Getting A Home Appraisal: What To Expect
Why lenders order appraisals, what appraisers look at, and what happens if it comes in low.
An appraisal is an independent opinion of what a home is worth. Lenders usually order one before approving a mortgage, so they know the home backs the loan.
The appraiser looks at size, condition, upgrades and location, then compares the home to recent nearby sales. In a town like Lacombe or Ponoka, a few recent sales on similar streets can make a big difference.
If the appraisal comes in under your offer price, the lender will only lend based on the lower number. You'd need to cover the gap, renegotiate, or walk away if your financing condition allows it.
An appraisal isn't a home inspection. It's about value, not whether the furnace is on its last legs, so you still want a proper inspection.
Thinking of selling instead? Our free valuation tool gives you a ballpark range, and a local agent can give you a proper market opinion.
Inspired by Getting a Home Appraisal? Here's What You Should Know on REALTOR.ca's Living Room blog. Further reading there.
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