Read Before You Refinance: 5 Tips For A Higher Home Appraisal
PV Realty Advisors is a Toronto Area-based Real estate Appraisal Services & Consulting Firm providing real estate appraiser, commercial appraisal, residential property appraisal, and land appraisal services for a wide range of Commercial, Residential and Investment properties.
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If you are considering refinancing your mortgage then there are certain things you should focus on. A major part of the refinancing decision lies in the home appraisal. So, you have some home works to do. You should remember that if the appraisal value puts the home equity at lower than 20% then you have to pay private mortgage insurance or go for a cash-in refinance. Also, the interest rate may be higher as well as you will be considered a risky borrower by the lenders. So, you need to make sure that your home equity stays higher than 20% before you apply for refinancing. To ensure this you should focus on home appraisal.
A home appraisal is a professional opinion about the value of your home which is conducted by certified professionals. The residential real estate appraiser will examine the amenities, aesthetic appeal, and the overall condition of the interior and exterior of the house including the garage, garden, and pathway. They also look at the transaction reports of neighboring properties that were sold recently. This will give them an indication of the price at which your property will sell at the moment. An appraisal report from the appraiser will give the lenders an idea about the current value of the house so that they can decide how much money they should allocate for refinancing. Here are some tips for getting a higher property appraisal.
The appraisal time
It takes about 7 to 10 days to complete the appraisal. The residential home appraisers have to spend a few hours inspecting the interior and exterior of the property, measuring the square footage and other details. The residential real estate appraiser also has to compare the property with those of the neighboring properties.
Cost of appraisal
It costs about $300 to $450 to appraise a home. The cost varies depending on the size, location, and condition of the property. Usually, the residential home appraisers work on an hourly basis or for a flat fee.
Mortgage underwriting
Mortgage underwriting happens after the appraisal. The underwriter will review the loan file to ensure that everything is alright. The documents must be in place and the calculations must be clear. Analyzing all these the underwriter will assess the risks involved with the loan before making the final decision about giving the loan.
Factors lowering home appraisal
The location has a big impact on the property valuation. If your home is located in an undesirable location like near a busy street or beside a junkyard, then your property will have a low appraisal value.
Factors improving home appraisal
You should make the condition of the house better before the appraisal. For example, you can paint your property, fix the roof or tidy the house to improve the curb appeal of your property. That way you will get a better appraisal.
An appraisal is necessary before refinancing so that the lenders don’t lend more money than the property’s value. In case of a foreclosure, the lender should be able to resell the house to collect their money.
Here’s What To Expect From A Home Appraisal
The home appraisal takes place once you have accepted an offer of buying a property or within 7 days after the inspector has reviewed your home. A home appraisal is carried out to find the overall estimated value of the property. Once the buyer and the seller have worked out details about all kinds of repairs, credits, or price of the property, the lender then sends a real estate appraiser Toronto to calculate the fair market value of the home.
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The cost of appraisal paid to the appraisal company Toronto may vary from one property to the other. However, the minimum amount important for a credible home appraisal anywhere in the country is between $450 and $550 respectively. It is important to mention that the buyer or seller cannot directly order the process of appraisal. A lender goes to a third-party appraisal management company or AMC to get an impartial opinion. It is the responsibility of the buyer to pay the appraisal company Toronto.
The basic point of appraisal:
The basic point of appraisal done by the real estate appraisal companies Toronto is to provide an impartial and independent analysis of the property. The process of appraisal always protects a buyer against paying more than the total calculated worth of the home, thereby saving his money. Under the process of appraisal, the real estate appraisal companies Toronto conduct extensive research concerning the comparable sales data and use an on-site visit to verify and check the size, condition, as well as features of the home.
Preparing for a home appraisal:
Before the process of appraisal, it is expected that the buyer must keep his house clean. It is the responsibility of the buyer to make the property look presentable to the real estate appraiser Toronto. Here is everything that can be done before the process of appraisal:
It is advised to deep clean the interiors of your home. Do not miss a spot and fix all the issues related to pests, pets, and many others.
If you have a pet living inside your property it is advised to secure your pet during the process of the appraiser. This is a basic courtesy and must be followed at all costs.
Apart from the interiors of your properties, you must pay equal attention to cleaning and organizing your exteriors as well.
Make sure that your home is well-painted both from the inside as well as outside of the house. Appraisers usually include the condition of the paint or peeling paint into their evaluation. This might cut down the overall value of your property.
The process of an appraisal depends upon the size of the property and the condition in which it has been left. Usually, the actual appraisal process inside the home could take 15 minutes minimum to a maximum of 2-3 hours. Once the evaluation of the property and the process of appraisal is finished, a report is prepared by the appraiser. The appraiser report then comes back to you in a week. In many cases, it could even take 10-12 days to come to you.