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The Canadian Dream:
Is Yours Safe?
Owning a home has always
been considered the
Canadian dream. For most, this will be the single
largest investment you will make in your life. Let
a qualified memeber of the Appraisal Institute of
Canada help you make sensible decisions based
on sound information. Your fitture may depend on
it! |
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WHY SHOULD I GET AN APPRAISAL?
Buying a home is an emotional decision. An appraisal offers an unbiased
opinion of the market value of the property you are interested in purchasing or
selling
An informed purchaser should place the following clause in their
Purchase Agreement "Subject to an appraisal meeting or
exceeding the agreed offer." This will ensure that a purchaser
doesn't pay more for a property than it's worth. There are several other
reasons for having an appraisal completed by an independent fee
appraiser, they are;
To obtain a qualified opinion of value for mortgage or lending purposes;
An expert's opinion of value of a home or other property can be the
basis for "just compensation" (as defined by law) in cases where
property is to be taken for future public use as in an expropriation, and;
An appraisal may be utilized as evidence for a municipal assessment
appeal.
HOW IS VALUE ESTIMATED?
The fee appraiser is after facts and will thoroughly investigate the property
being appraised. The appraiser is well versed in current market trends, general
value of real estate in the area of taxes, and special assessments, and all
other factors which might affect the value of property.
The two basic methods employed by the appraiser to arrive at an indication of
value for a private residence are: Direct Comparison Approach and the Cost
Approach to value. However, most weight is placed on the Approach which
reflects current market conditions.
HOW TO SELECT AN APPRAISER?
Select your appraiser much as you would a doctor, lawyer or any other
professional and enquire about clientele. Every qualified appraiser will be
happy to supply such information, having worked hard to develop a reputation
for competence in the appraisal field. You can recognize a qualified appraiser
by the designations AACI or CRA, which are earned from the Appraisal
Institute of Canada.
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