6 Things That Buyers Need To Know About Appraisals
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Home appraisals can be an important factor in any home buying or selling deal. An appraisal is a professional, unbiased opinion of the value of your home. As a buyer, appraisals are very important if you require a mortgage. Lenders require an appraisal to gauge how big of a loan you can qualify for. Banks do not want to hand out more money to buyers than the home is actually worth. For more information about appraisals here are the 6 things all buyers need to know.
- Who Pays For The Appraisal
- What Appraisals Are Based On
- What Is Included In The Appraisal Report?
- How Long Does It Take To Get The Appraisal Report?
- When Do Appraisals Take Place
- What Happens If The Appraisal Price Is Lower Than The List Price?
In the case, the appraisal price is lower than the list price your bank will cap your potential loan at how much the house is appraised. If this should happen, you do have a few options. The first is to seek additional financing to cover the difference. The second is to try and negotiate with the seller to lower their price. The safest option is in your initial offer, write in a financing condition. This means that your offer to buy their property is conditional to you obtaining financing. If you do not obtain financing, you may walk away from the deal.
An appraisal helps banks protect themselves against lending more money than necessary. It also may protect you from purchasing a house without a full loan. For more information about getting an appraisal on a house contact us today.
At Knowledge Broker, our goal is to create an open-source of information for all our clients. We want to ensure that, at the end of the day, they get exactly what they want and what they need. If you know someone who could use our help or services please put them in touch with us or send us their details using the contact information below. And before you go, click here to take the Knowledge Broker Quiz and see exactly what we can do for you!
JOSHUA CAMPBELL (@knowledgebrkr)
Real Estate Broker
Coldwell Banker The Real Estate Centre, Brokerage
joshua@knowledgebroker.ca
249 Avenue Road • Newmarket, ON L3Y 1N8
289.231.0001