Property Appraisals: What You Need to Know

A property appraisal is also known as real estate appraisal and it can help you learn your property’s real market value in Toronto. With the right appraisal company, you can acquire a certified appraisal on commercial or residential properties to be used for different purposes, such as buying and selling a house, applying for a home equity or commercial loan, or refinancing. The company will assign an appropriate property appraiser to take care of the commercial or residential appraisals depending on your requirements. Here are more things you must know about the getting your property appraised:

Understanding appraisals

A residential or commercial appraisal may be requested by mortgage lenders from their preferred appraisal firms in Toronto. The results will be an unbiased professional opinion on the value of the real estate. A qualified property appraiser compiles the report based on a visual inspection and other factors including current market trends, the recent sale of similar properties in the area, and features of the building or home.

For buying and selling property

Sellers of residential and commercial properties set the sale price that is based on fair market value. If they fail to do that, they risk under-pricing and losing money, or over-pricing and turn-off potential buyers. While a real estate appraisal will usually give them the market price, the resulting appraisal may also be expressed as a range of values depending on the type of property. Using this information, a seller can indicate a starting price on the property or determine the optimal rent if they decide to make it available for lease.

For refinancing and home loans

Up-to-date residential appraisals will ensure that the property’s market value is current (because it may have changed since the first appraisal). Lenders typically require a new property appraisal to be done by a qualified property appraiser before they set the refinancing terms and loan amount.

For commercial loans

A commercial appraisal may be necessary for a business that wants to expand and acquire sufficient funding. In this case, the property can become a collateral for the business loan. A certified real estate appraisal in Toronto will help ensure the appropriate loan for that business.

Work with the right property appraisers

If you are looking to have any property appraised in Toronto, make sure you are hiring an established and trustworthy appraisal company. That way, you can be sure that they are professional and that they have your best interests.