Some of the most common reasons for property appraisals include, but are not limited to:
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01.
Financing
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Litigation
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Estate Planning
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Assessment
Challenges -
05.
Listing
Purposes
As members of the Appraisal Institute of Canada, and designated Canadian Residential Appraiser’s (CRA), our team is able to work for our clients according to the highest standard in Canada, CUSPAP. (The Canadian Uniform Standard of Professional Appraisal Practice)
Appraisal Overview
Let our firsthand knowledge of the local marketplace guide you. During a property appraisal, there are three approaches to value that we can consider: Income, Cost and Direct Sales Comparison. We will walk you through which approaches apply to you, depending on your property, and can aid you in determining the market value.
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COMMON MYTHS
MYTH: An appraisal is the same as a Realtors Opinion of Value.
FALSE. An appraisal is an in-depth view of the property with features and factors being compared to other properties with similar features and factors. The sales considered have to meet the definition of market value as laid out in CUSPAP. Appraisals signed by designated members have usefulness for financing and estate planning and settlement, whereas opinions of value typically do not.
Learn MoreFAQs
Frequently Asked QuestionsThat will depend on the purpose of the appraisal and the location of the property. How long will it take to complete the appraisal once an inspection takes place. Again, depending on the purpose of the appraisal, a typical re-financing assignment will be completed for the lender within 3 days. Referrals – our Clients have included Financial Institutions, Law Offices, The Federal Government, Private Lenders, Personal Property Owners, to mention a few.
For the average Canadian a home purchase is the largest single investment most people will ever make. Whether it’s a primary residence, a second vacation home or an investment, the purchase of real property is a complex financial transaction that requires multiple parties to bring it all together.
The Realtor is the most common face of the transaction; the mortgage company provides the financial capital necessary to fund the transaction, and; the lawyer ensures that all aspects of the transaction are completed and that a clear title passes from the seller to the buyer.
But who makes sure the value of the property is in line with the amount being paid? There are too many people exposed in the real estate process to let such a transaction proceed without ensuring that the value of the property commensurates with the amount being paid.
This is where the appraisal comes in. An appraisal is an unbiased estimate of what a buyer might expect to pay – or a seller receive – for a parcel of real estate, where both buyer and seller are informed parties. To be an informed party, most people turn to a licensed, certified, professional appraiser to provide them with the most accurate estimate of the true value of their property.
It all starts with the inspection. An appraiser’s duty is to inspect the property being appraised to ascertain the true status of that property. The appraiser must actually see features, such as the number of bedrooms, bathrooms, the location, and so on, to ensure that they really exist and are in the condition a reasonable buyer would expect them to be. The inspection often includes a sketch of the property, ensuring the proper square footage and conveying the layout of the property. Most importantly, the appraiser looks for any obvious features – or defects – that would affect the value of the house.
Once the site has been inspected, an appraiser uses two or three approaches to determine the value of real property: a cost approach, a sales comparison and, in the case of a rental property, an income approach.
The cost approach is the easiest to understand. The appraiser uses information on local building costs, labour rates and other factors to determine how much it would cost to construct a property similar to the one being appraised. This value often sets the upper limit on what a property would sell for.
Why would you pay more for an existing property if you could spend less and build a brand-new home instead? While there may be mitigating factors, such as location and amenities, these are usually not reflected in the cost approach.
