By Tracey Davies, Sales Representative, ABR, CRA
Re/Max Centre City Realty Inc & Tri County Appraisal
January 6, 2017
So, you have an accepted offer on your house and in your mind it is
Woot Woot. Good Days Ahead!!!.
The buyer said they were preapproved?
The preapproval given to buyers from many banks is a preliminary tool to help buyers decide what price range they can shop in. However, most often, the questions asked by the lender at the preapproval stage are not detailed enough to get a true picture of the financial situation of the buyer. The buyer only hears the bank say "yes, you are preapproved to borrow $275,000". But the banker also says a lot of other things like:
subject to a credit application, employment verification, and appraisal
The buyer is excited and happily takes their accepted agreement of purchase and sale into their bank and they are anticipating that the bank will simply have them sign a couple forms and write them a cheque for $275,000. But the bankers work has just begun.
An Appraiser Calls You
The seller or buyer gets the call from an appraisal company requesting an inspection appointment for the buyers mortgage application. The consumers first step should be to ask the appraiser to book the appointment with their Realtor. This will give your Realtor the opportunity to sell the highlights of the property to the appraiser. Ideally, the Realtor can be at the property for the appraisal and provide details that an appraiser might need to do the work efficiently and accurately.The Realtor will be able to point out features that might not be obvious, like neighbourhood attributes, school boundaries, hidden upgrades, marketing history, etc. The best opportunity for a smooth transaction at the appraisal stage is for the Realtor and Appraiser to have a short discussion on the marketing and features of the property.
Get the Realtor and Appraiser in the Same Room!
Why does the bank needs an appraisal of the home?
What happens if the accepted offer is higher than the appraised value?
Congratulations! Multiple Offers!
You got more for the house than the appraised value!
Win! Win! Win!..... but will the deal close????
The buyer finds out their preapproval was subject to appraisal
"The Appraiser Killed The Deal *&&*$#@%!!!"
The appraiser might be asked to review or reconsider