1. What is an Appraisal?
An appraisal is a formal, impartial estimate or opinion of value, usually written, of an adequately described property, as of a specific date, and supported by the presentation and analysis of relevant data. It is prepared as a result of a retainer, for reliance by identified parties, and for which the appraiser accepts responsibility.
2. What is the cost?
Cost is based on the individual appraisals and will be determined at the time of the appointment. Typically however, our professional fees range from $350 to $750 plus HST for single-family dwelling residential appraisals (bank appraisal fees may vary from these levels), while our valuation fees for relatively straight forward commercial, multi-family or industrial property range from $1,500 to $3,500, plus disbursements and HST. Consulting services and court appearances are billed at an hourly rate.
3. What is the process?
- Upon call from the customer, an appointment will be setup
- The appraiser will inspect the whole property through eyes of a typical (potential) purchaser.
- Residence will be measured if bluepints are not provided
- Photos of the property will be taken
- The appraiser will research the current market to determine fair market value of the property.
- An official appraisal report will be produced for the customer
4. How long does this take?
The appraisal generally takes about one half hour on site.
Research and other requirements will depend on information provided by the customer and other resources.
Our services are time sensitive, accurate and reliable.
Whenever possible, we strive to have your report delivered to you within 24 to 72 hours of inspection.
5. What about an appointment?
From the time the customer calls to book an appointment.
6. How credible is(are) the document(s)?
This is a legal document and is highly recognized by the Ontario Justice System.
Court costs incurred will be in addition to the original quote.
7. What Information will be Included in a Full Appraisal Report?
The appraisal report includes, but is not limited to the following general information, the address, legal description, taxes, assessed value and age of the dwelling. The neighborhood will also be described, in terms of its age, proximity to amenities such as schools, shopping centres, any negative externalitiess that may affect the marketability of the subject property, and common types of dwellings located in the neighborhood.
All reports contain the following:
- the estimate of value
- the effective date of the appraisal
- the certification and signature
- the purpose of the appraisal
- the qualifying conditions
- the condition of the neighborhood
- an identification of the property and its ownership
- an analysis and interpretation of the data and the assumptions made
- the processing of the data by one or more of the three approaches to value
- other descriptive support material such as photographs, maps etc.
8. What Methods are Used to Determine Value In The Appraisal?
There are three basic methods of arriving at an indication of value. The following methods are used to indicate value in an appraisal report. The most common two approaches for residential properties are the Direct Comparison Approach. and the Cost Approach.
- The Direct Comparison Approach – is based on the theory that an informed purchaser would pay no more for a property than the cost of acquiring another existing and equivalent property. The value estimate is based on the selling price and listings of comparable properties.
- The Cost Approach – estimates the cost to build a new building identical to the subject being appraised, at current prices, subtracting accrued depreciation and adding the estimated land value.
- The Income Approach – relates to income-producing property and is based on the theory that value is the present worth of the income stream which the property is capable of producing when developed to its highest and best use. The net operating income from the property is capitalized into value by an appropriate method and rate.
To arrive at a final estimate of value, the appraiser will select the value indicated by the approach most appropriate for the subject property. This final estimate of value will be supported by the most reliable, factual and relevant market data, which has been analyzed and verified.
9. Who Can Use My Appraisal?
The intended user, that being the client whom ordered the appraisal. For any other user, a letter of transmittal would be required, with authorization from the appraiser and the intended user.
It is important to note that the appraisal reports prepared by our company are accepted by the majority of financial institutions, sublenders, all lawfirms and the general public.
10. What types of reports do you provide?
- Narrative Appraisal Report: This report provides a full and comprehensive level of detail in the presentation of information pertaining to the subject property, and the data relied upon in the valuation. The ultimate level of comprehensiveness can vary to some degree, depending on the needs of the client and the function of the report. This report may also involve some extraordinary limiting conditions or arrive at a value that is other than market value (i.e. an insurance valuation).
- Short Narrative Appraisal Report: This report provides a minimal presentation of information pertaining to the subject and the data used to arrive at an opinion of value. The report may be limited to the client only and may consider anyone else using the report as an unintended user, thereby denying liability to any third party. The format is often used in low-ratio lending situations.
- Form Reports: Most residential appraisal assignments being used for mortgage financing require the completion of a standard form report. The forms we use in such instances are sanctioned by the Appraisal Institute of Canada.
- Review Report: A critical study of a report prepared by another appraiser. This report may or may not involve the preparation of our own valuation. We will comment on the opinion offered in the report being reviewed, and will discuss whether it meets the standards set by the Appraisal Institute of Canada.
- Appraisal Updates: An update involves referencing our original report, usually prepared by the same author, and the inclusion of new market information or data pertaining to the subject property that will result in a updated opinion of value. In cases where the report is older than 12 months, a new appraisal may be required in order to meet the standards set by the Institute and our insurance carrier.
- Advice and Expert Testimony: This work includes tax counselling, assessment appeals or reviews, zoning advice, appearance as an expert witness in arbitration hearings, expropriation and litigation. These services are often related to an appraisal previously completed and are based on an hourly rate previously agreed upon prior to undertaking the assignment.