What happens when there are no comparable sales for an appraisals
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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…...
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factors in real estate valuation

What are appraisers looking for?

How do appraisers arrive at a valuation of your home? We've talked before about the step-by-step process involved in the residential appraisal process. But what are appraisers really looking for when they're walking around your property, making notes on their clipboard or tablet? It's important to remember that appraisers are looking to arrive at a value of the home given 'average' circumstances. They're not valuing the home based on what the 'ideal buyer' (the one who'll take one look at…...
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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…...
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Kevin Slemko AACI appraiser on Canada mortgages
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Mortgages in Canada: A range of options

It's best to understand your options before you shop If you've been thinking about buying a home in Canada, you've probably also been thinking about mortgages. If you've ever spoken to anyone at your bank or other financial institution about mortgages, you probably know there are a sometimes-bewildering number of options. But what do they all mean? Here, we break down your choices, and provide a high-level outline of the differences. Conventional mortgages This is probably what most people think…...
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FAQs for appraisals for real estate
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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…...
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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…...
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Kevin Slemko of Midtown Appraisal Group FAQs

Appraisals: The 5 questions we’re asked most often

For many years, as a practicing appraiser, I didn't have a huge amount of contact with homeowners or residents. A financial institution would call with an appraisal request, I'd make arrangements with the real estate agent to pick up the keys or access the lockbox, and do the inspection when the owners or residents were at work. It was left to the real estate agent or mortgage provider to explain the appraisal process to their clients. But these days, more…...
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how are appraisals created

What goes into an appraised value?

It's not just a comparison to the house next door. It happens to every appraiser, often once a week: Someone involved in the property buying and selling process says something like "Yeah, this appraisal won't be that hard. The house across the street sold a month ago and it's pretty much the same layout, so we expect the value of our property to be about that price - well, a bit more probably, since prices are going up so fast!"…...
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How Ontario farms are appraised

How are Ontario farms valued?

Per-acre farm values in Canada have been rising more slowly than residential home prices (about 5% in 2019 vs 2018), but, like residential properties, values are largely dependent on regional locations and southern Ontario values can be as much as 35% higher than the provincial average. With as much of 75% of Canadians' wealth tied up in real estate, and given that we're at the beginning of the largest generational transfer of wealth in Canadian history, the next decade will…...
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Kevin Slemko AACI talks about zoning verification

Zoning Verification: Definitely worth the fee

Sometimes, when you’re appraising a property – especially an older one – you’ll come across something that doesn’t seem to fit in with the typical zoning for the area: Maybe it’s a large commercial sign in a street of single-family homes, a quadruplex that was built in the 1960s that now sits beside luxury homes, or even a small barn with a pony in the backyard of a house in an otherwise residential neighbourhood. Typically, these are ‘grandfathered’ exemptions: That…...
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