Appraisal in Canada
The appraisal is a condition of final approval. A valid approval cannot exist without first having an acceptable valuation. An appraisal is done in order to establish the value of the house at the time of purchase. Lenders require detailed summarized appraisals to ensure a true value of the property, The appraisal is done by a third party, who performs a task, and client has to pay the appraisal fee when the work is completed. If the down payment is more than 20% on a home, it will always be condition to have an appraisal completed and the fee for appraisal is a cost to the client. If deals are insured, the insurer will cover the cost for the assessment value of the home as it is insured. If clients buy a house through the builder, appraisal is required by the lender. The appraisal establishes whether or not client is paying fair market value.