FAQ

F.A.Q.

Real Estate Appraisal FAQ

When to hire an appraiser?

  • For any mortgage and real estate transaction
  • When applying for a loan against a property
  • For a tax assessment to reduce property taxes or to dispute improperly assessed taxes
  • To settle an estate
  • To determine the property value when selling your home
  • To assist you with buying a home at a fair market price
  • To settle legal disputes

For answers to your questions about appraisal in Western Canada please call us for more information.

What is in an appraisal report?

Depending on the type of report an appraisal contains:

  • The precise purpose of the appraisal and the client’s objectives for the appraisal.
  • The reported value of the property and how that value was interpreted.
  • The date the appraisal takes effect.
  • The characteristics of the property including, location, physical features, permanently installed items, legal attributes, and all facets that affect the valuation including, economic factors property rights and any known defects, restrictions, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature.

Who hires an appraiser?

Appraisers are frequently hired by lenders to establish the market value of a property for a loan transaction to ensure that the property is valued in the amount of the requested loan. Lawyers and accountants frequently hire appraisers to help determine property values in the course of divorce and estate settlements.

What is the Appraisal Process?

The appraisal process includes the research, compilation and analysis of all pertinent data as it relates to your specific requirements. Property DNA & Consulting Inc. provides several types of reports in standardized or narrative book form.

Interior Inspection

A list of all assets and defects are objectively analyzed and compiled in a detailed written report.

Property Condition

Includes the specifics of construction, property layout, number of rooms and specific features, equipment; improvements and renovations.

Neighborhood and surrounding areas

An assessment is made on a property’s proximity to services, facilities and amenities as they may (or may not) relate and affect its market value.

Property Classification

Public records are analyzed to confirm sales and make comparisons in the particular Western Canada region. A range of public records and sources are used including zoning records, tax data, professional associations and other applicable publications.

Calculating the Market Value

Sales Comparison

In its most basic form, this approach is built on the premise that the market value of a property is partly derived and comparable to surrounding properties.

Cost Approach

Since the market obviously relates to cost, this approach takes into account and analyzes market trends.

Income Profit

Generally reserved for valuations for commercial and investment properties, determining the market value using the income capitalization approach relies on the perspective that the potential earning power of real estate is significant when calculating its actual value. Income capitalization techniques are used to analyze sales data that measures potential profit and loss.