Frequently Asked Questions
"How do I need to prepare my house for the appraisal?"
You do not need to worry about housekeeping. We understand we all live busy lives and the property may not be "show home" ready. The appraiser is only looking at the real estate. For most appraisal services we are required to enter every room of the house, accessory structures and must be able to see mechanics such as the furnace and electrical panel. If this is not possible we recommend discussing prior to the appointment.
With your permission we do take interior pictures. You can certainly decline photographs, however it is best to discuss with your appraiser, broker, lender etc. prior to the appointment. Depending on the purpose of the appraisal, a report without photo's may not be accepted by a particular client. We do take care not to include personal items or people in the photographs.
"Is there anything you need from us?"
If there is anything we need we will ask when we are booking the appointment. Some common documents/ information that is helpful but not always necessary includes;
Building plans, surveys, plot plans.
Most recent tax bills
List of upgrades
Offer to purchase
Pertaining to condominiums, common element fee's, parking etc.
"How do you determine the value?"
There are three approaches to value, the direct comparison approach, the cost approach, and the income approach to value. The appraiser will determine what approaches to value are applicable and these will be reconciled into one final value estimate.
The Direct Comparison Approach is the process of deriving a value indication for the subject by comparing similar properties that have sold. By comparing similar properties to the subject an opinion of market value is established. This approach directly measures the current actions of willing sellers and buyers within subjects the market. This approach is typically given the most weight in the reconciliation process.
The Cost Approach is based on the expectation that market participants relate value to cost. The estimate of value is based on a comparison with the cost to build a new or substitute property. The cost estimate is then adjusted for depreciation evident in the existing property to determine a value estimate.
The Income Approach is based on the basic theory that the higher the earnings, the higher the value, providing the amount of risk remains constant. An appraiser analyzes a properties capacity to generate future benefits and capitalizes the income into a present value.
It should be noted that the approaches to value are only used when applicable. For example, as most residential properties are not bought and sold for there income producing potential the income approach is typically not applied. As well the cost approach is also not applicable when appraising strata type dwellings.
"What about my pets?"
The appraisers in our firm are lovers of animals, from the furry to the scaly! However, personal safety is always a priority, if you have an animal which you may be uncertain to how they might react, we ask that caution is taken. This may mean using a kennel, putting the animal outside or in the garage, or we can even shuffle between rooms.
Sometimes animals can act out of character when we are present. If we feel an animal may be showing signs of anxiety or aggression we will ask to have the animal separated to ensure a smooth process. If that happens we understand, there is no need to apologize.
"If I'm paying for the report why don't I get a copy?"
While booking the appointment the appraiser may inform you that although you are paying for the report we can only send directly to the client named on the report, and will not be sending you a copy. In many real estate transactions the intended user / client named on the report is not the owner or purchaser. Only the intended user can use the report, and only for the intended use specified. Therefor in these instances the owner / purchasers etc. are paying for the service of the appraisal not the report itself.
We understand why this can be concerning to some owners / purchasers paying for the service. If you would like to discuss further please call so we can address your concerns and determine the correct course of action prior to the appointment.
"I have concerns about my personal safety/privacy"
We take our own personal safety and privacy very seriously and understand that you should to. We abide by high standards of professionalism and comply with PIPEDA (personal information and electronic documents act) and the appraisal institute of Canada's CUSPAP (Canadian Uniform Standards of Professional Appraisal Practice). We are happy to discuss any personal safety or privacy concerns you may have to ensure mutual trust and respect.