What is an Appraisal?
An appraisal is a professional report prepared by a qualified appraiser. An appraisal provides a market value estimate of your property based on recent comparable sales in the area.
Why Do I Need an Appraisal?
The reasons for performing a real estate appraisal are varied. Clients typically seek out a professional appraiser for an opinion on:
- Current value estimate of property being bought or sold
- Future value estimate of property being built
- Value estimate for mortgage or lending purposes
- Value estimate to assist in investment decisions
- Value estimate to measure property tax assessments or other taxes
- Verification of damage claims resulting from fire, hail, windstorms and other disasters
- Value estimate of property to determine compensation where property is to be expropriated
- Value estimate of property involved in litigation
- Value estimate of property for partition action purposes
- Value estimate of private property acquired by governments for public use
- Value estimate of property as it affects pending business mergers or dissolution
Who Should Order an Appraisal?
Typically banks, mortgage brokers, lawyers, accountants and government officials adhere to specific guidelines and must order the appraisal directly. Clients are encouraged to check with their financial professional to ensure that their appraisal request is processed correctly.
How Much Does an Appraisal Cost?
The cost of an appraisal varies depending on the location, type and size of the property as well as other extenuating factors. We highly recommend clients request an appraisal to receive a quote on cost and time frame.
What Does the Inspection Entail?
The appraiser will need access to all rooms in the dwelling to measure and take photos. They will also need to measure the property and take pictures of the exterior. The inspection takes approximately 30 minutes for a standard home. If there are multiple units or if it’s a large/commercial dwelling it could take up to an hour.
How Long Does the Report Completion Take?
The report generally takes 1-3 business days to complete, but more complex assignments can take longer.
Will I Receive a Copy of the Report?
If the report is for financing through a lender, we are unable to issue you a copy of the appraisal report as per the regulations of the Appraisal Institute of Canada. You will have to contact the lender or mortgage broker if you wish to receive a copy.
What is the Difference Between an Appraisal and a Home Inspection?
Ridley & Associates Appraisals will inspect your home based on size, rooms, general condition, etc., to form an overview of your property to compare it to similar properties sold in the area. A home inspector will look at wiring, plumbing, etc., to advise a home-buyer of the condition of those elements of the home but will not provide an opinion of value.
What is the Difference Between a Realtor’s Valuation and an Appraiser’s?
An appraiser will give you a market value estimate of your property based on an intensive analysis of the local real estate market. A realtor will provide an opinion of value to establish an appropriate listing price to market your property. Listing prices and market values usually differ.