COMMON QUESTIONS

Frequently asked questions

Everything you need to know about real estate appraisals answered clearly and honestly by our team.

What is an appraisal?

An appraisal is an unbiased, formally presented opinion of a property's market value. It can be presented in a variety of formats from a short form report (a few pages) to a full narrative report (50+ pages), depending on the purpose and complexity of the property.

How is property value estimated?

Every appraisal considers the property's location, age, size, and condition alongside recent comparable sales and current market conditions. There are three main approaches used: the Cost Approach (estimating replacement cost minus depreciation), the Income Approach (converting anticipated income into a value), and the Direct Comparison Approach (comparing the property to similar recent sales). Most reports incorporate one or more of these approaches depending on the property type.

How much does an appraisal cost?

The cost depends on your property type, location, the kind of report required, and what it will be used for. Please contact us directly and we can provide a quote and estimated timeline.

What does an appraisal report contain?

In plain terms, a standard appraisal report includes: identification of the property, client, and authorized use; the type and effective date of value; market context; relevant property characteristics; a value analysis using one or more of the three accepted approaches; a reconciliation and conclusion with a signed estimated value; and an addendum with supporting documents such as maps, photos, MLS listings, and land titles.

What use is a professional appraisal to me?

There are many reasons to get a professional appraisal and they mostly come down to money. Whether you are buying, selling, refinancing, going through a separation, settling an estate, or developing land, a professional appraisal provides an unbiased, defensible value that can save you from costly mistakes. For example, if you are selling, a professional appraisal gives buyers confidence your asking price is justified. If you're buying, an appraisal gives your lender some assurance of their loan. If you are separating, a $500 appraisal could save you thousands in disputes.

What is "market value"?

Market value is the most probable price a property would sell for in a competitive market, between a willing buyer and seller, neither under duress, and both acting knowledgeably. It is important to note that Market Value can and often does differ from other types of value such as Insurable Value, Forced Sale Value or a value used for tax assessment purposes.

Why pay for an appraisal when others will tell me for free?

Many people in the real estate industry can give you an idea of value but ask yourself: what do they have to gain? Professional appraisers have no commission, no bonus, and no external pressure. Their only goal is to provide you with an accurate, unbiased, and defensible report. What your property sells for makes no difference to the appraiser - and THAT is the key to truly unbiased advise.

What should I expect during a property inspection?

For a residential home or condo, expect the inspection to take 20 minutes or more. The appraiser will photograph the exterior and interior, take measurements, and note key property features such as bedrooms, bathrooms, layout, and finishes. It helps to share information like renovation history, known issues, and copies of your tax assessment, blueprints, or real property report if you have them. Commercial and agricultural inspections are similar but may take longer.

What is an Appraisal Management Company (AMC)?

An AMC acts as a coordinator between a bank and an appraisal firm - for financing related appraisals - ordering the appraisal, tracking its progress, and delivering the final report to the lender. Atlas Appraisal Services works with all major banks and their AMC of choice. Keep in mind that different AMCs have different requirements and fees, and this added step typically comes at a cost that is ultimately passed on to the consumer.

What is the difference between the client, the Authorized User and who pays for the appraisal?

This can be a complex question in the appraisal industry. The short answer is: it depends on what the appraisal is for and who ordered it. It is not uncommon for lenders to order an appraisal, which the home owner pays for, but the home owner does not get a copy of it. In that case, the lender may be the client and the authorized user. There are other situations where a mortgage broker may be the client, a specific lender may be the authorized user, and the home owner is neither. This can be a hot topic - we always suggest reaching out to us directly for your appraisal needs, and/or inquiring with your lender about this specifically - so there are no surprises along the way.

What rules do appraisers have to follow?

The appraisers at Atlas hold AACI designations with the Appraisal Institute of Canada and are bound by the organizations professional standards and regulations - which are comprehensive, updated on a regular basis, and designed to protect the consumer and the industry. Appraisers which belong to the AIC are required to hold extensive liability insurance, complete ongoing educational and competency requirements, and maintain a high level of professionalism and respect for themselves and others across the real estate industry.

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Whether you need a residential appraisal, commercial valuation, or just have a question our team is ready to help. Reach out today.

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