What is a Home Appraisal?

A property appraisal is an unbiased, professional estimate of the value of a residential property. The primary purpose of a home appraisal is to determine the fair market value of the property, which is the price it would likely sell for on the open market under normal conditions. Home appraisals are commonly associated with real estate transactions, such as buying or selling a home, refinancing a mortgage, or obtaining a home equity loan. 

What determines the value of a property?

Market conditions: 

Recent sales of similar properties is the main basis for the appraisal process. I compare your properties to similar properties which have recently been sold in your area in order to determine the market value of your property - AKA what a typical potential purchaser would be willing to pay for your property. Macroeconomic trends and general supply and demand also play a major role in the value of your property.

Property and dwelling size: 

The size of your property and of the dwelling are major factors in the value of your property. By utilizing trusted municipal assessment records and other software to accurately determine the size of your property. The appraiser will measure the size of the dwelling on site as per The Appraisal Institute of Canada's Building Measurement Guidelines.

Zoning compliance: 

I verify the current zoning of your property and ensure that the current use is concurrent with the Highest and Best Use of the property, and can provide advice on optimal land uses.

Age, Condition, major upgrades and/or renovations, and features: 

The condition of the home is an important factor in determining the value of the property and how it stacks up to the competition. Kitchen, bathroom, flooring, finishing and various other renovations can significantly increase the value of the property. Other elements such as the age of the roof, furnace/HVAC, windows & doors, plumbing and electrical components are considered when establishing the depreciation applicable to the property and its overall condition.

Location: 

Location, location, location... The one thing that cannot be changed about a property and requires careful consideration. Proximity to parks, school, transportation, water frontage and other amenities are generally recognized as being sought-after locations which demand a premium. However, proximity to highways, commercial/industrial properties, or simply less desirable locations might require a discount when compared to other properties.

All of these factors and more are considered and analyzed to determine the market value of your property.

Appraisal Checklist:

Here are a few things you might need to know which can help you & your property prepare for the appraisal to ensure the highest possible value.

Clean & Declutter:

Showcasing your home in the best possible light to allows the appraiser to accurately note the condition and quality of the interior finishings. 

Access:

The appraiser will require access to all rooms, basement and/or crawl space, and outbuildings. Attic access is not required.

Repairs:

Ensure that any ongoing work is completed and complete any necessary repairs. A well maintained home is a positive attribute.

Plans/Specifications/Quotes/Estimates/Upgrades: 

Create a list of all recent improvements which would be pertinent for the appraiser to know about your recent renovation. Additional information about the age of critical components such as the roof, windows and furnace will be requested.

Do not hesitate to contact us if you have any questions or concerns about the appraisal process!

mc3appraisals@gmail.com

613-276-2324