An Appraisal is an impartial estimate or opinion of the value of real estate. The appraisal is usually a written statement setting forth an unbiased opinion of the value of an adequately described property as of a specific date and supported representation and analysis of relevant data.

There are several uses of an Appraisal, some of which are:

• Mortgages

• Refinancing

• Insurance Purposes

• Divorces

• Estate Appraisals

• Expropriation

• Capital Gains Assessmentstext goes here

An appraiser observes, investigates and analyzes the real estate market and actions of the people who operate within it.

The professional appraiser is after facts. The appraiser will thoroughly investigate the property that is being appraised. In addition, the appraiser is well versed in current market trends, general value of real estate in the area and in taxes and special assessments, in other words, the whole range of items which would affect the market value of the property.

The professional appraiser is also able to provide consulting services including feasibility studies into land use, property management and related information.

AACI, P.App: The AACI, P.App (Accredited Appraiser Canadian Institute; Professional Appraiser) is a fully accredited member in the Institute and indicates the individual’s competence in a wide range of real estate appraisals.

 CRA: The CRA (Canadian Residential Appraiser) is competent in appraising residential properties and dwellings of no more than four units

When valuing real property, there are three basic approaches, which can be employed, being the Cost, Income and Direct Comparison Approaches. 

The Cost Approach to value is used when valuing properties consisting of land and building(s) and is most effective when the building(s) are relatively new and not suffering from any great amount of depreciation. Utilizing this approach to value, the land value is estimated by the Direct Comparison Approach based on sales of comparable properties. 

The Income Approach to value is used to value investment type properties such as industrial buildings, apartment buildings, office buildings and the like. Gross income is estimated based on economic (market) rents and the expenses necessary to maintain the income stream are also calculated. 

The Direct Comparison Approach is most widely used and generally the most reliable method of valuation, assuming enough market data is available to substantiate the opinion of value.  To employ this approach, a search of the market is conducted to find sales of comparable properties. When properly adjusted, these comparables will yield an indication of Market Value of the subject property and will reflect the interaction of vendors and purchasers in the open market as they arrive at a price that is considered fair by both parties involved.

The cost of an appraisal can vary widely depending on several factors including the type of property, its location, size, and the complexity of the appraisal itself. Contact us to get an estimate.