Alternate uses for real estate appraisals in ONtario

5 other reasons to get a professional real estate appraisal

(Outside of a sale or purchase) Anyone who's ever bought a piece of property - especially a residential home - involving a mortgage is probably familiar with the appraisal requirement: Very few banks or mortgage financing companies will lend money for home purchase without ensuring that a professional appraisal has been done. They need to know that their investment is reasonable and protected. However, there are several other situations in which appraisals make sense - and can spare you from…...
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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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Overcoming appraisal myths by Midtown Appraisals

The big appraisal myths, debunked

This infographic (below) from The Appraisal Institute has been around for a couple of years now, but I came across it again recently and I think it's still worth a look, especially if you're new to the appraisal process. (NOTE: The infographic refers to federal legislation in the US, and some of those laws may not be applicable in Canada, or in the Canadian province in which you live. If you're in any doubt about what information applies to you,…...
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Kevin Slemko AACI agricultural appraisals

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 Midtown Appraisals on new homes

You’re buying a new home. What do you need to know?

If you're like many Canadians, you've grown up thinking that one day, you'd be buying your own home. It seems like a pretty normal thing to do - until you're actually doing it for the first time, yourself. When you find yourself actually signing paperwork committing you to hundreds of thousands of dollars over a couple of decades - well, it can suddenly seem like a very big deal. But the more you know, the less stressful it can be.…...
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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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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…...
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Kevin Slemko AACI appraiser on spending too much

“But that bathroom cost me $27,000!”

When valuations don't reflect the money the homeowner spent I hadn't been an AACI for very long when it happened: I was doing an inspection of a pretty standard, older 3-bedroom bungalow outside of Hamilton, and the homeowner insisted I see the master bathroom first. "You have to see this!" he said, leading me toward the back of the house. When I got to the bathroom door, I guess my face didn't register the amazement he expected, because he started…...
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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…...
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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…...
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