The Appraisal Process

1. Inspection

An inspection of the property is used to determine components and characteristics of the property that will influence value. During the inspection an appraiser will identify the location, design, layout, constructions details and mechanical systems of the property.

Apraiser Collecting Data

2. Data Collection & Analysis

Our appraisers gather and analyze information about market trends and information specific to the property being appraised including legal description, property taxes, site dimensions, site area, zoning, age, floor area, neighbourhood details, sales history and comparable sales data. Source of our data include the Vancouver Real Estate Board, the Fraser Valley Real Estate Board, the Multiple Listing Service (MLS), British Columbia Assessment Authority (BCAA), BC Online, Land Title Registry, Canada Mortgage and Housing Corporation (CMHC) as well as information gathered from private developers.

3. Choosing a Valuation Approach

An appraiser will choose between different valuation approaches. The two methods commonly used to value residential properties are the cost approach and the direct comparison approach.

The cost approach values a property based on a comparison with the cost to build a new or substitute property after adjusting for depreciation. The direct comparison approach values properties based on recent sales, current listings or offers to purchase comparable and competitive properties in the marketplace. This approach is generally considered the most reliable because it is based on actual market conditions and therefore is the most commonly used.

Apraiser Using a Calculator & Laptop

4. Final Estimate of Value

To arrive at a final estimate of value, the appraiser selects the value indicated by the approach most appropriate for the property and supported by the most reliable, factual and relevant market data, which has been analyzed and verified.

5. Reporting

All the information is communicated to the client in a report. Reports usually can contain photographs of the subject's exterior & interior, comparable sales photographs, strata plans, sketches and maps of the site, location, comparable sales as well as aerial maps. All the information is reviewed, certified and delivered to the client.