What Is an Appraisal?
An appraisal may also be referred to as a market valuation or an assessment. A real estate appraisal provides the fair market value of real property. Market value is the most likely selling price that is negotiated between a knowledgeable buyer and a knowledgeable seller in arm’s length transaction. An appraisal is a point-in-time market valuation as of a specific date. We can provide an appraisal as of current market or as of a date in the past (retrospective appraisal).
How Is The Market Value Determined?
Most residential properties sell based on what similar properties have sold for. We research the market for comparable sales, active listings and expired listings to determine the market value of your property. Ultimately, we have to rely on actual sale prices.
If there are differences between the comparable sales and your home that would affect sale price (such as location, house size, condition, etc), then adjustments are made for those differences. The size of those adjustments is based on our research of the local market. For rental properties, the income and expenses can also be used to determine value where appropriate, in addition to researching comparable sales.
We are members of the Appraisal Institute of Canada
What Does an Appraisal Report Include?
Our appraisal reports meet the Appraisal Institute of Canada’s CUSPAP Standards of Professional Appraisal Practice. The reports include information about:
- the neighborhood
- the subject site itself (zoning, physical characteristics, etc)
- highest and best use analysis
- exterior and interior details of the house and other structures on site, including photos
- details on the most comparable properties that were researched along with monetary adjustments made to determine the subject’s value
- explanation of the sales and determination of value
- exterior photos of the comparable sales
- a map showing the location of the subject and sales
- limiting conditions and assumptions
- scope of the assignment
- appraiser’s certification, including the subject’s range of value and the final conclusion of value
Read the Article: Guelph House Appraisers: How Does a House Appraiser determine what my house is worth?
Call us today for your objective, fair, and detailed appraisal.