When you buy a home, your mortgage lender wants to make sure the house is worth at least as much as you are paying for it. The lender does not want to loan you $200,000 for a house that is worth only $150,000. If you do not make your mortgage payments and the lender has to foreclose on the property, they want to make sure they can sell the house for enough to get their money back. Therefore, the lender typically requires an appraisal to be done on the property. Although it may seem a nuisance to get an appraisal, Canadalend appraisal costs may end up being a great value to the buyer.
Who Performs the Home Appraisal?
An appraiser, who is typically a licensed individual trained to give expert opinions concerning property values, give the appraisal. Appraisers are third party certified contractors hired by the lender. They are knowledgeable in real estate and are required to know how to value a property based on factors such as location, amenities, and the physical condition of the property.
Canadalend deals with many lenders who are willing to loan significant amounts of money against a property. These lenders require assurance for the loan they provide. When you are paying for Canadalend appraisal costs, it is the actual lender who dictates the aspects of the appraisal, such as which appraisal company will be used. The appraisers that come to the property are not associated with Canadalend but rather with the lending company involved. That being said, the expert staff at Canadalend combine years of experience and a wide range of strong relationships with experts in the financial industry to ensure that they provide clientele with fairness and transparency.
Who Pays for the Home Appraisal?
Although the lender usually requires an appraisal to be done, the buyer typically pays the appraisal fee. The appraisal generally costs a few hundred dollars. The cost depends on the property value, property location and size of the property.
Value of the Appraisal to Buyers
It is important to recognize that although the lender usually requires the appraisal, Canadalend appraisals actually function as protection for the buyer. If the appraisal of the property comes in higher than the price you are paying for the home, the buyer will benefit immediately because they will have more home equity in the property than originally thought. For example, if the buyer is paying $225,000 for a home and the appraiser states the house is worth $250,000, there is an instant gain of $25,000 in equity. On the other hand, if the appraisal comes in lower than the sale price, you will need to carefully consider all options available to you. If your contract is contingent upon an appraisal, you may have the option to withdraw your offer. In this case, the appraisal has actually saved you from overpaying for the property.
While Canadalend appraisal costs are just another cost that must be paid by the buyer, the appraisal cost may be well worth the investment.
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