When Is the Appraisal Done When Buying a Home?
You must not pay for the appraisal very early during the mortgage loan procedure for buying home loans. It may reduce your negotiations with the seller scopes if the appraiser decides to visit during the talks. The main point in the home appraisal process is the buyer paying for the appraisal. And the process does not go forward if you don’t pay for it. So, when is the appraisal done when buying a home in Edmonton? Read on to learn more!
What is an Appraisal?
Despite deciding a cost between the buyer and the seller, a licensed third-party appraisal determines a fair market price of the house. A mortgage lender usually needs assessments to assess the actual value of the home and decide how much it can lend. However, sellers sometimes accelerate the appraisals before the listing to price their property accordingly.
Why Do Lenders Ask for an Appraisal?
An appraisal is a professional, fair estimate of a home’s worth for sale. Before issuing a mortgage, lenders always need the home appraisal to safeguard their investment. If a property’s accurate market price is lower than its selling price and the buyer depends on the mortgage, the lender cannot sell the property for an excellent price to cover the loan.
How Long Does a Home Appraisal Take?
The home appraisal process usually takes almost 7-10 days. The appraiser physically examines a property, calculates the square footage, and assesses the home’s fixtures and features. Moreover, they compare the house to other currently sold, similar homes in the exact location or neighborhood.
After visiting the house for a physical examination and running the comparable sales or comps, the appraiser makes an appraisal report. The timeline taken for the whole process relies on the schedule or workload of the appraiser and the appraisal’s complexity.
What Does a Property Appraisal Cost?
Generally, home appraisals cost between $300 and $600. The home’s size, location, and condition are the cost-deciding factors. Appraisers must work on an hourly or a flat fee basis. If the appraiser wants a percentage of a home’s value as payment, it can signify fraudulence, which you must avoid.
If the home buying process goes seamlessly, the home appraisal is significant while closing the deal. If the appraisal value is not more than your expectation, the transaction can be canceled or postponed. No matter which circumstance you experience in the home buying or selling process, you should have a basic understanding and an answer to this question: “when is the appraisal done when buying a home in Edmonton?”
When it comes to a home appraisal, you should not hire a newcomer in the industry. Chris Hedstrom has been working with homeowners for many years to help them make the most comprehensive choices while buying a property. If you want to invest in a new home in Edmonton, that’s not an issue. Give me a call today, and I can clear all your queries so you can proceed with the property appraisal. I will wait to hear from you!