What is an appraisal?
An appraisal is a professional, independent, objective and unbiased opinion of value. It is a point in time valuation, based on the real estate’s “market conditions” at that time. A valuation can be current, prospective (a date in the future) or retrospective (a date in the past).
An appraisal report can be completed as a form report, typically completed for residential properties, or a concise narrative report, typically used for rural or agricultural properties as well as for litigation purposes for residential properties. Concise narrative reports are more detailed than form reports.
At Dekker Appraisal Services Ltd. we complete both form and concise narrative reports.
The appraisal process begins with gaining a full understanding the clients needs that often involves a formal written quote outlining the terms of reference, scope of work, cost and timing. Once contracted, the appraiser begins his/her research of the property, including location, neighbourhood and searching current or historic sales data of the subject property. Next, an inspection is completed at a mutually agreed upon date and time. The inspection includes viewing the interior and exterior of the buildings, measuring and photographing all buildings and other site improvements and inspecting the land to identify all relevant features. Most of the time comparable sales will have been selected in prior to the inspection and the appraisal will view these from the roadside.
With all necessary information in hand, the real estate market in the area is researched, the appropriate comparable sales and supporting market data is selected, triaged and analyzed and the report is written. Most reports at Dekker Appraisal Services Ltd. are peer-reviewed to insure quality and accuracy.
A valuation completed by a professional appraisal is kept confidential and is not shared with anyone without the client’s written permission, regardless of who pays for the appraisal.
An appraisal can be a helpful tool in planning for a potential purchase or sale, in succession planning, in price negotiations, and in litigation proceedings. Appraisals completed by a professional appraiser are accepted by the courts, Canada Revenue Agency and well as other government agencies and crown corporations.
