Quite often we are asked about the difference between a valuation and an appraisal. Simply put an appraisal will give you an idea of the “market value” of your property, while a valuation will give an idea of the borrowing power you have against your property.
The market value of your home is a reflection of what price you’d be likely to sell for given the current housing market conditions. Appraisals are performed, generally for free, by real estate agents and salespeople to determine this value. An appraisal will give you the market value of your home should you decide to sell now.
A valuation is a little bit different. Typically, a valuation is performed prior to finance approval when someone is buying a home. A bank will send a valuer to ensure the amount of the loan is worth the property being purchased. If they determine that the loan is worth more than the valuer’s estimate of the property they may not grant finance approval. This is why banks seldom lend 100% of the purchase price.
If you’re ready to sell, you’ll need an appraisal – to book an inspection of your home and have an accurate appraisal done give me a call.
