When you decide to buy a new home, you logically know that it will be a little more complex than just plugging in a search for houses for sale Calgary and picking one. You can browse many photos online and watch all the 3D tours you desire, but nothing replaces walking through the home so you can open and shut the closet doors yourself.
Home Appraisals and Your Mortgage
Once you find a few homes you really love, you get serious about deciding between them. To do this, you have to look at the financial facts about each home and its actual value. You need to examine the age of it as a whole and its pieces. If this is your first home purchase, you might not know what this means, but you need to bone up before home shopping seriously.
One of the most important aspects of home buying and selling is the home appraisal. A homeowner can have an appraisal conducted at any time, but the only one that applies to the home’s sale price will be the one the potential purchaser’s financial lender requires before making a mortgage decision. That appraisal determines the home’s value for sale. This valuation may not match the asking price. If the valuation exceeds the asking price, the bank will likely approve the mortgage as it will if the two match. If the asking price exceeds the valuation, you will probably get a “no” for an answer or the bank will only provide the valuation amount for the mortgage. That leaves you with the remainder of the purchase price to come up with on your own.
What a Valuation Considers
A home appraisal considers the details of the home from its base structure such as the foundation and its framing, to its roof, basement finish level, and the condition of its walls and built-ins. Appraisers undergo special training to conduct these. The minimum certification essentially equals a two-year college degree or Associate’s degree. The appraiser looks for structural solidity, updates, solid maintenance, and high-quality construction.
They add value to the appraisal in increments of $500. Items like new flooring, newly painted or wallpapered walls, or a new roof increase the home’s value. Curb appeal items like a porch or patio or cement or stone path walkways do the same.
The appraisal also considers the foundation health so a cracked or otherwise damaged foundation decreases the value. Water damage to walls or outdated electrical will also lower the valuation. The appraiser also compares the home with others in the same neighborhood of comparable size and age that recently sold. Essentially, the valuation ensures that you buy a home at its true value. This helps protect you from spending too much money on a house that isn’t worth the asking price. Keep that in mind when starting your search for “houses for sale Calgary” because while it does add a little time to the buying process, it is worth the wait.
