Step One: Documentation
- Photograph all buildings, the neighbourhood, areas of concern and special features
- Take interior tour of all rooms including basement
- Measure main buildings, make notes regarding size, layout, finishing materials and overall condition of each room
Step Two: Development Review
- Discuss ownership history, past improvements, future improvements
- Discuss non-visible property components – insulating, heating costs, wells, septic systems, etc.
- Discuss age and condition of major components – roof, windows, furnace, plumbing, electrical, etc.
- Discuss neighbourhood – viability, recent development, economic outlook.
Step Three: Comprehensive Research
- Research legal description and ownership of property from registry office records
- Research sales and listings within immediate neighbourhood in past year
- Research general neighbourhood for recent sales that could be seen as comparable
- Analyze sales data and make comparison to the subject property, adjusted for age, wear, etc.
- Estimate value of land, if vacant; estimate cost to replace house/buildings; estimate depreciation
Step Four: Final Report
- Report includes purpose of appraisal, details of property, comparable sales chart, cost approach chart, reconcilation values, etc.
- Report will include some pictures from the inspection
- You will receive a map of the location of the property and comparable sales.
- Workfile will contain notes, sketches, etc., and will be held for ten years, as per AIC regulations
- Prepared report sent to client in PDF form
Whether buying or refinancing a home, it is important for you – the consumer – to understand where the appraisal report falls within the overall mortgage loan process. There are many parties involved and each plays a critical role within the transaction. Click here to read more.
Many Canadians are interested in knowing the “smartest” household renovations to make to receive a good return on investment. Although there are many variables that affect the value of a home, the Appraisal Institution of Canada (AIC) offers these general tips to Canadian consumers. Click here to read more.