- To obtain a loan.
- To lower your tax burden.
- To establish the replacement cost for insurance.
- To contest high property taxes.
- To settle an estate.
- To provide a negotiating tool when purchasing real estate.
- To determine a reasonable price when selling real estate.
An Appraisal Report can only be created by a professionally designated, certified professional, which is generally the only document type accepted by mortgage lenders, government bodies and the courts.
- The client and other intended users.
- The intended use of the report.
- The purpose of the assignment.
- The type of value reported and the definition of the value reported.
- The effective date of the appraiser’s opinions and conclusions.
- Relevant property characteristics, including location attributes, physical attributes, legal attributes, economic attributes, and the real property interest.
- Division of interest, such as fractional interest, physical segment and partial holding.
- The scope of work used to complete the assignment
- That the information analysis utilized in the appraisal was appropriate.
- That significant errors of omission or commission were not committed individually or collectively.
- That appraisal services were not rendered in a careless or negligent manner.
- That a credible, supportable appraisal report was communicated.
The Appraisal Institute of Canada requires appraisers to render an unbiased opinion based upon extensive education and experience requirements. To become a designated appraiser with the Appraisal Institute of Canada, appraisers must fulfill rigorous education and experience requirements. In addition, appraisers must abide by a strict industry code of ethics and comply with Uniform Standards of Professional Appraisal Practice for real estate appraisal. The rules for developing an appraisal and reporting its results are insured by enforcement of the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP).
General data is gathered from a number of sources. Local Multiple Listing Services (MLS) provide data on recently sold homes that might be used as comparables. Tax records and other public documents verify actual sales prices in a market. And most importantly, the appraiser gathers general data from his or her past experience in creating appraisals for other properties in the same market.
The following Items, if available, will help your appraiser to provide a more accurate appraisal in a shorter period of time:
- A survey of the house and property.
- A recent tax bill.
- A copy of the original plans.