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Discussion Starter #1
What have your experiences been like?
I just had my home appraised for a Homeline BMO mortgage. Appraisal cme in 5K more than the tax assessment. Good for me if the city wants to asses me higher, but ultimately my house is worth what someone is willing to pay, which right now is more than the appraiser.
Out of curiosity, do these appraisers know what you are applying for, and do they come close to what the bank is gonna lend you?
BMO is picking up the tab, but I could have saved them 300 bucks and simply gone with the city assessment.
All in all I dont think appraiser add any value.
Your thoughts?
 

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Well since the meltdown in the States the appraisal business has been booming here in Canada.

They are being extremely conservative about their appraisals much more so then before.

In 10 years of property management I had never had a property appraised until last year. I also manage three brand new condos at Sherway Gardens and the bank wanted those appraised as well??? before lending. The house I manage was also appraised as well as the townhouses I manage.
 

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BMO is picking up the tab, but I could have saved them 300 bucks and simply gone with the city assessment.
Homes are not very liquid, all things considered. So when it comes to appraised value, it is more of an art then a science. If you bring in a real estate agent, who is trying to appease you, you will find an appraisal in the upper range of possibilities. If you bring in an appraiser, who works for a bank, like you did, he/she will end up with a number on the lower range of possibilities.

This is because, this appraiser could not care less whether you get a loan or not and/or how much that loan is for. What they do care about is not appraising a house for more than it is actually worth and losing the bank money from their erroneous appraisal (if the appraisal is too low the bank will not lose money from this type of error). Losing the bank money will significantly reflect on their repeat business and that is what they care about.

As for the city assessment. They are done with computers and have proven not to be accurate enough for lending purposes.
 

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Discussion Starter #5
I would say my city was accurate, after getting the appraisal. I remember my first home 10 years ago was appraised for a lot more than it was worth. I can see being more conservative these days
 
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