Frequently Asked Questions
The following is a list of questions that our customers frequently ask:
What is the cost?
Cost is based on the individual appraisals. Costs will be determined at the time of the appointment.
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
How long does this take?
The appraisal generally takes about one half hour on site. Research and other requirements willl depend on information provided by the customer and other resources. Generally this process can be completed the next business day.
What about an appointment?
From the time the customer calls to book an appointment. We will respond within 2 hours.
How credible is the document(s)?
This is a legal document and is highly recognised by the Alberta Justice System. Court costs incurred will be in addition to the original quote.
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.
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 centre's, any negative externality's 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
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.
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.