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Your buying, refinancing or building and your mortgage professional informs you the bank has requested an appraisal…

Real estate appraisal is the process of developing an opinion of value of a given property. Banks use these appraisals and the values provided by the appraiser to determine how much money they are willing to lend on a given property.

An appraisal is required when a bank or lender needs to know what the fair market value of a property is in order to determine how much money they will lend.  The appraised value of the home also gives the lender an idea what the home could be sold for should the mortgage go into default.

When a property is being assessed, the appraiser is not only looking at the specific details of your home, they are also confirming that the property is being well maintained.
Once the appraiser has assessed the property they are required to provide a list comparable properties which have recently been sold within a close proximity to property being appraised to support the value established by the appraiser.

The appraiser MUST be approved by the particular bank/lender that is providing the mortgage.


  1. Refinancing – This is done when the home is worth more than is owed on the mortgage.  Home owners can then refinance to access their equity either in the form of a Secured Line of Credit or a whole new mortgage giving you a lump sum of money.

  2. Determining Market Rents – if you are buying or converting your current home into a rental and need establish fair market rents for lending purposes an appraisal can be ordered to establish reasonable rents in your area.

  3. Construction and Renovations – when building or doing extensive renovations an appraisal will be ordered to determine the current value as well as the value of the home once the specified work is completed.

  4. Purchasing- There are many reasons that your lender may be requesting an appraisal of the property you are purchasing. Here is a quick list of common reasons that would/could trigger an appraisal.

  • AS IS -when a property is listed on the MLS As Is, the banks may want to confirm the value and condition of the property.
  • private sale- when a property is sold privately and is not exposed to the open market via MLS the bank may order an appraisal to confirm the value.
  • Zoning – if a property is dual zoned or zoned other then residential the bank may want ton confirm value and use.
  • Acreage -if the property has a large land parcel the bank may want to confirm the value.
  • Bidding War -if a home sells for over the original asking price, an appraisal may be required to confirm the home is worth the amount it sold for.
  • Purchase Plus Improvements- when buying a new home you can borrow extra money to modify or update the home, in this case the bank may order an appraisal to confirm the value after the work is done.
  • Concerns -if a property’s located near an automotive garage or in a known contamination zone an appraisal can be required for soil testing etc.

I am always available to answer your questions, information is the key to a successful real estate transaction.

Candice Joy
Email –
Text/call – 613 558 1143


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