Real Estate Appraisal FAQs
Frequently Asked Questions about home appraisals and the home appraisal process.
Why should I get an appraisal?
Having your home appraised is important for numerous reasons. Before you decide to sell your home, you should know its value, or if it is worth doing some “touch-up” work to maximize your property’s potential. If you are buying, you may want someone who is at “arms-length” to help determine whether you are paying a fair market value for the property. If you are planning on renovating, and wish to cover the costs by re-financing, your bank will require an appraisal to value your home “as is” and “as improved.” This will help to set your construction progress draws, as well as help you determine which improvements will give you the most value for your efforts.
What is the process of an appraisal?
An inspection of the property is required in order to verify size, location, number of rooms, built-ins, quality of construction, measurements, deficiencies, site improvements, outbuildings and views. After the inspection, the appraiser compiles an appraisal report by researching, analyzing and combining information from various reliable sources with due diligence.
How does the appraiser determine a value?
We generally use two of the three valuation approaches to determine the value of a property:
Direct Comparison Approach: a value is derived by analyzing comparable properties that have sold within a given time frame and adjustments are made for the differences.
Cost Approach: a value is derived by using the cost to replace the land, plus the value to replace the improvements, minus any depreciation for the age of the dwelling.
Income Approach: a value is based on the projected income from a rental property.
What affects the value of my property?
Many factors affect value which include, however are not limited to: location, market conditions, physical features, size, economic characteristics, zoning and future potential
What qualifications does an appraiser have?
Our appraisers are all members in good standing with the Appraisal Institute of Canada (AIC) In order to become designated as a Canadian Residential Appraiser (CRA), or an Accredited Appraiser Canadian Institute (AACI), an appraiser must have an undergraduate degree in addition to undergoing an extensive accreditation program through the University of British Columbia Real Estate Division. Each appraiser has professional liability insurance in accordance with the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP) and the AIC.
Who can see my appraisal?
We value your privacy. An appraisal report is confidential and is released only to the original requestor of the appraisal report, and only to other parties with the original requestor’s permission.
Why choose D. Fritz Appraisals Inc?
We provide a fast and efficient turn-a-round time and quick response to any follow-up questions you may have.
Our firm is approved for most bank, credit union and private lending lists. The information each institution requires varies greatly and we complete our appraisal reports to meet the strictest requirements of the lenders.
We enjoy a wide client base earned from providing professional and practical residential appraisal advice of the highest quality.
Our appraisers are all members in good standing of the AIC. This allows our clients to feel confident and assured that they are receiving a well respected, thoroughly educated, and time warranted appraisal service.
Do you have a specific question?
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