What is an appraisal?
An appraisal is a formal opinion of value on a property as of a specific date, supported by an analysis of relevant market and property data.
How much does an appraisal cost?
Our appraisals are competitively priced, and may vary based on the complexity of the report and other factors. Please feel free to contact us for a quote.
Who owns the Appraisal? Who is the Appraiser’s client?
The appraisal report is owned by the “client”, who, according to the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP) and the Uniform Standards of Professional Appraisal Practice (USPAP) is: “the party or parties who engages an appraiser in a specific assignment”.
This may mean that although one pays for a report, they may not necessarily be the client. As we adhere to client confidentiality, the appraisal report and its contents can only be released to the client.
What is market value?
An accepted Canadian definition of market value, from The Appraisal of Real Estate (Third Canadian Edition) Copyright 2010, is as follows:
“The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self interest, and assuming that neither is under undue duress.”
What are your qualifications?
Our team of appraisers include AACI, P.App, CRA and Candidate Members of the Appraisal Institute of Canada (AIC), the leading real property valuation association in Canada.
AACI (Accredited Appraisal Canadian Institute) – Members with this designation are qualified to offer valuation and consulting services and expertise for all types of real property.
CRA (Canadian Residential Appraiser) Members with this designation are qualified to offer valuation and consulting services and expertise for individual, undeveloped residential dwelling sites and dwellings containing not more than four self-contained family housing units.
Candidate Members of the AIC are individuals who are pursuing the rigorous AIC Program of Professional Studies to obtain an AACI or CRA professional designation. Candidate Members prepare and take limited responsibility for appraisal reports under the supervision of an AIC-Designated Member.
AIC holds all members to the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP), which is recognized internationally. In addition, all members are required to undertake on-going professional development.
How is market value determined?
The following are the primary methods for determining market value and one or more of these approaches is typically utilized in the appraisal process:
Cost Approach
A set of procedures through which a value indication is derived by estimating the current cost to construct a reproduction of (or replacement for) the existing structure, including an entrepreneurial profit, deducting depreciation from the total cost, and adding the estimated land value. Adjustments may then be made to the value of the subject property to reflect the value of the property interest being appraised.
Income Approach
A method through which an appraiser derives a value indication for an income-producing property by converting its anticipated benefits (cash flow and reversion) into property value.
Direct Comparison Approach
A process in which a value indication is derived by comparing the property being appraised to similar properties that have been sold recently, applying appropriate units of comparison, and making adjustments to the sale prices of the comparables based on the elements of comparison.
There are other methods that may be applicable depending on the nature of the property and complexity of the assignment.
Why do I need an insurance appraisal? Can I just use my assessed value?
The replacement cost is the price to repair or rebuild your building if it is severely damaged. This is often very different from the assessed value of your home which includes the value of your land and a depreciated residual value to the building.
How long will it take to receive an appraisal?
Appraisals on single residential properties can normally be completed within five to ten business days. Commercial and insurance appraisals typically require a minimum of two weeks.
How do I get ready for the appraisal?
Typically the first step in most appraisals would be setting up a time for the Appraiser to inspect your home or property. You can help by making sure the Appraiser has easy access to all interior/exterior areas of your property. If available, having the following items available will assist the Appraiser:
• A copy of the floor plan
• A survey of the house and property
• A list of any improvements you have completed to the home (i.e.: updated kitchen, etc.)
How is Market Value different from Assessed Value?
Assessed Value is a determination of value for taxation purposes using mass appraisal techniques. Mass appraisal techniques value properties in large groupings versus individually and therefore may not be a true reflection of the market value of an individual property. In British Columbia, the assessed values are as of July 1, of the preceding year and therefore there is a six month time gap between the valuation date and when you receive your assessed values.
