Appraisal value affected by maximalist design
,

Design, style and ‘clutter’: Do they affect appraised value?

The answer is...it depends. As an appraiser, I'm often asked some version of this question: "My house is a mess and I just found out they want to send the appraiser tomorrow. Do you think it'll make a huge difference to the appraised value?" And more recently, in the era of minimalism, I also get asked whether a more 'maximalist' approach to interior design will negatively impact value. The standard, professional answer is, of course: "No, it won't affect value.…...
Read More
Kevin Slemko AACI on how to conduct estate appraisals
,

Estate Appraisals: What you need to know

When an estate involves real estate, proper valuation can be crucial It's a common situation: An elderly parent dies, leaving behind a spouse, adult children and young grandchildren. The family home is owned outright, or has a small mortgage, and everyone assumes that the home will be sold and the proceeds divided. Simple, right? After all, there's a straightforward Will and no one's arguing. Except that when there is a surviving spouse, and/or step-children, and the Will turns out to…...
Read More
Kevin Slemko, AACI on mortgage terms

Mortgage term lengths: Do you know your choices?

Appraisers aren't real estate salespeople or mortgage brokers, and definitely shouldn't be offering advice or counsel to the people whose properties they're appraising. However, as we've discussed before, because of our particular role in the process, and because they often end up meeting home buyers and sellers during their inspections, it's not surprising that we're often asked questions about home mortgages. A recent study showed that as much as 50% of Canadians don't really understand mortgage terminology, and aren't able…...
Read More
Overview of the home appraisal process

Appraisals 101: A handy graphic

You don't have to be an expert, but you should know the basics. I know what it's like: Whether you're buying or selling your home, especially in the current overheated market, the last thing you have time (or interest) for is a deep dive into real estate appraisals. At the same time, as a vendor or purchaser of property, especially if it's your first one or it involves the fairly large sums of money typical of real estate in southern…...
Read More
Midtown appraisal group on types of Ontario home

Types of house in Ontario: The basics

Do you know the differences? At first glance, 'house types' seems obvious: We all know the difference between a 1-storey house and a 2-storey house, right? But different terminology is used for different types of homes based not just on how many storeys they contain, but also on the way the floors are arranged. Here's an overview of the most common types of homes you'll see in Ontario. (There are other types, but most of them are just slight adaptations…...
Read More
What appraisers bring to the table
,

What is the role of the appraiser in home valuations?

Where data, experience and insight meet In previous posts, we've talked about how appraisers use data and comparable sales in order to arrive at a valuation for properties. For residential properties, comparable sales tend to offer a good starting point: If four similar properties on the street have sold in the past few months, they provide a good indication of what your home is worth. But sometimes, you'll see two homes in the same neighbourhood that seem, on the surface,…...
Read More
What happens when there are no comparable sales for an appraisals
,

What happens when there are no comparable sales?

Say what you will about sprawling new subdivisions, they're a residential appraiser's dream. There's nothing easier than putting a value on a house when there have been 4 sales of the exact same model on the street in the past 6 months. But what happens when you're faced with, say, a beautiful 90-year-old home that's been renovated multiple times over the years, has a larger backyard than the newer properties which have sprung up around it - but also a…...
Read More
Second mortgage FAQs by Kevin Slemko

Second mortgages: Popular FAQs

Second mortgages can be useful - but it's important to know what you're getting into As appraisers, it's not unusual for us to be asked to provide a valuation for a property when a second mortgage is being considered. Because second mortgages are, as their name suggests, 'second in line' to be repaid after the first mortgage, the amount of equity in the property is even more crucial than for a first mortgage. Lenders want to be assured that in…...
Read More
FAQs for appraisals for real estate
,

Appraisals 101

What you should know about the appraisal process We know that whether you're a buyer or a seller, the appraisal process - especially for residential or agricultural properties - can be nerve-wracking. Here are answers to some of the questions we get asked most often. Why do I need an appraisal? Contrary to popular belief, appraisals aren't conducted because the bank (or anyone else involved in the transaction) is suspicious or looking for problems. It's simply a way for a…...
Read More
Kevin Slemko AACI appraiser hamilton

How do appraisals work?

Residential appraisals are more straightforward than you think You've sold your house, but your offer is conditional upon an appraisal by the bank. What does this mean? The buyers of your home have applied for a mortgage from a bank, with the house used as collateral. The bank gets an appraisal to ensure that there's enough value in the home to cover the mortgage in the event the buyers default. (Depending on the financial institution, the client and the economic…...
Read More