Whether you are purchasing a home or looking to refinance, determining a property’s value is an essential step in the mortgage application process.  A professional appraisal may be required if a more in-depth assessment of the value of your property is needed and required by the lender.

The value of a property is determined by a number of different criteria, each of which can influence how much your home is currently worth. These criteria range from the square footage and the age of your home, to its location, construction quality, architectural features and even the number of bathrooms.

It is important to remember that a property valuation is not a fixed or permanent number. It is simply a snapshot of what your home is worth today.

The appraisal process includes a professional assessment of the property’s physical and functional characteristics, a detailed comparison of the home to recent comparable sales in nearby areas, and an assessment of current market conditions affecting the property. It is important to allow the appraiser access to the property in a timely manner, in order to minimize the time required to obtain financing.

When a loan is backed by CMHC, Genworth, or CG, the lender may waive the appraisal. Otherwise you can expect to pay from $275 and up for an appraisal. Size and location of the property is a factor in the appraisal fee. While some lenders may pay this expense, expect to pay this fee out of your own pocket.

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