One of the key benefits of working with Calvert Home Mortgage Investment Corporation is the ability to utilize our in-house real estate analysts, which saves you time and money and makes the process of borrowing more efficient. This also allows us to provide an amazing client experience where expert eyes on the property provide peace of mind that the project will be successful. It also helps us feel secure in the scope of our loans and keep our finger on the pulse of what’s happening in the market.
Providing in-house valuations is an example of that, allowing borrowers to access our same-day valuations at no additional cost.
Here’s what you need to know.
How do our In-House Valuations work?
Calvert Home Mortgage has a team of in-house real estate analysts that will complete a Market Value of your project within 24 hours using the Direct Comparison approach.
The Direct Comparison approach is the standard approach used by appraisers as it best reflects the buyers and sellers in the market for single-family homes.
This approach produces a value by comparing the subject property with similar sold properties called comparable sales. The Direct Comparison approach is based on the premise of the Principle of Substitution which implies that a rational investor or purchaser will pay no more for a particular property than the cost of acquiring another similar property with the same features.
What are the benefits to our borrowers?
An appraisal ordered by a bank can cost anywhere between $400-1200 and can take days or even weeks to get back. Our real estate analysts will have an answer to you, often within 24 hours at no cost to you on qualifying properties.
You’ll get an “As Complete” Market Value based on the renovation plan you have submitted to the real estate analyst, meaning how much your renovation will be worth once complete. This allows you to consult with us to determine if the project looks successful.
If your project looks successful, we’ll give you guaranteed financing based on our As Complete Market Value, allowing you to purchase the property without a finance restriction.
This key advantage allows you to compete in fast-moving markets and save money on an appraisal.
What do we need from you?
To complete the As Complete Market Value Assessment, we require your budget for the project and description of work to be completed.
Tell us what you’re doing! The more detailed you can be in describing the renovations and improvements you’re planning for the property, the more accurate our real estate analysts can be. After-repair value is an important component of your project.
Let’s say you’re renovating the kitchen. Don’t just say – “renovating the kitchen”. Give us the details:
- Opening the floor plan by removing the wall between the living room and the kitchen.
- Adding an island with a waterfall countertop.
- Replacing all the cabinets with white shaker style cabinets that extend to the ceiling.
- Updating the backsplash with grey chevron tiles.
- Putting in a farm sink and built-in stainless-steel appliances.
- Upgrading the lighting with modern pot lights, and pendant lights over the island.
Providing examples of previous work or pictures of homes with a similar renovation is also very helpful. Our Flip Analyzer Tool for both Alberta and Ontario markets will provide you with more information on the details we look for in assessing your project.
Do we ever use third-party appraisals?
Yes, in instances where the value of the home is over $1.5 million or has zoning that is different than residential, such as commercial, industrial, or mixed-use zoning. We also may use third-party appraisals in some cases where the property is very unique, like homes with a unique style, design, or location within their community.
To learn more of the specifics on how to value a property, look at this video hosted by Jesse Bobrowski and Robin Mackay, Calvert Home Mortgage team members.
If you have questions about our in-house valuations or any other services we can provide for you, let’s talk! Get in touch with our team by calling the office at 403-278-0249 or reaching out directly to the underwriting team via the details listed below.
Rob Maver
rob@chmic.ca
Garrett LaBarre
garrett@chmic.ca
Sherwin Dziwenka
sherwin@chmic.ca
