When it comes to selling your home, the process can become quite daunting and complex. We’re faced with multiple showings, closing contracts, and last minute details. But often in this chaotic procedure, we tend to lose understanding of certain roles in the selling process — especially around the home appraisal. Here are some myths and facts about home appraisals in the Mississauga area:
Myth: The appraiser works in the interest of the buyer.
Fact: In reality, the appraiser is there for the lender. The appraiser looks at the home in question to ensure that the lender does not loan more money than the property is truly worth. It is possible for the appraiser to give a price lower than what the lender is willing to pay.
Myth: Anyone can appraise a home.
Fact: All lenders must deal with licensed personnel to conduct any home appraisal. Appraisers must be a member of Appraisal Institute of Canada and hold Canadian Residential Appraiser (CRA, P.App) or Accredited Appraiser Canadian Institute (AACI, P.App).
Myth: A clean home means a good appraisal.
Fact: Appraisers have little concern over how clean your home might be. They are looking for more structural problems, chips in the wall, or any other major problems. They also consider your home’s size, style, and location. A home closer to a good school will often receive a better appraisal than a home that is far away. The thing to worry about it not your home’s cleanliness, but any repairs that need to be made.
Myth: An appraiser is the same as a housing inspector.
Fact: The appraiser is just what their title suggests — an appraiser. Yes, they are qualified to appraise a home, however, there are significant differences between an inspector and an appraiser. For instance an appraiser is not qualified to examine the wiring of a home whereas that is well within an inspector’s realm. It is the inspectors job to find all problems in every aspect of a building while the appraiser merely looks at the visible aspects. Inspectors might go into a crawl space or attic while appraiser won’t.
Selling Your Home in the Mississauga Area
If you’d like to learn more about the home selling process in the area, contact us.