We offer a full range of appraisals including

agricultural, residential, and commercial

403-527-2737

What is an appraisal?

An appraisal is a professional appraiser’s opinion of value. The preparation of an appraisal involves research into appropriate market areas; the assembly and analysis of information pertinent to a property; and the knowledge, experience and professional judgment of the appraiser. The role of the appraiser is to provide objective, impartial and unbiased opinions about the value of real property – providing assistance to those who own, manage, sell, invest in and/or lend money on the security of real estate.

At minimum, the province of Alberta requires appraisers to be licensed and certified in order to provide appraisals. Appraisers have fulfilled rigorous educational and experience requirements and must adhere to strict standards and a code of professional ethics. Qualified Alberta licensed appraisers bring knowledge, experience, impartiality and trust to the transaction. In so doing, they help their clients make sound decisions with regard to real property.

Most appraisals are reported in writing, although in certain circumstances, an appraiser may provide an oral appraisal. A written appraisal report generally consists of: a description of the property and its locale; an analysis of the “highest and best use” of the property; an analysis of sales of comparable properties “as near the subject property as possible”; and information regarding current real estate activity and/or market area trends. The value indicated by recent sales of comparable properties, the current cost of reproducing or replacing a building, and the value that the property’s net earning power will support are the most important considerations in the valuation of real property.

In addition to agricultural, residential or commercial appraisals – and depending upon an appraiser’s designation and qualifications – he or she may be able to assist with the following:

  • Estate planning and estate settlements
  • Tax assessment review and advice
  • Advice in eminent domain and condemnation property transactions
  • Dispute resolution-including divorce, estate settlements, property partition suits, foreclosures, and zoning issues
  • Feasibility studies
  • Expert witness testimony
  • Market rent and trend studies
  • Cost/benefit or investment analysis, for example, what will be the financial return on remodeling
  • Land utilization studies
  • Supply and demand studies

An appraisal is a valuation tool used by mortgage lenders to verify a property’s worth for prospective financing. The mortgage industry relies upon a qualified independent real estate appraiser to guide them in their financing decisions. But is this the only reason to get an appraisal? Many homeowners, assessor’s offices, attorneys, buyers and sellers utilize appraisal for a variety of needs:

Property Tax Assessments

Challenging the tax assessment has become a necessity in many parts of the country. Unfortunately, most people go into these challenges unarmed. They may pull some information from the Internet to support their claims, but have no real basis for their claims.

A real estate appraiser can provide the accurate answers to the question of value. While it may not be economical to commission a full appraisal to save a few hundred off your tax bill, often an appraiser can do a limited appraisal for much less, yet with the same conclusions and integrity. An appraisal from a qualified appraiser would be a step in the right direction in any dispute with your local tax assessor.

Estate Planning

In times of loss, it is often difficult to think of the various steps that must be taken to resolve any outstanding monies of the deceased. An appraisal is required to establish fair market values of any real estate properties in the estate for tax filings and any presentation to multiple heirs. The aid of an appraisal is a necessity to dispose of the estate properly

Divorce

In unfortunate circumstances, such as divorce, appraisals are required so that both parties involved receive a fair and impartial value so that they can concentrate on more important aspects of this difficult time. An appraisal by a qualified independent professional third party is often required by law to settle the divorce.

Feasibility – Land Utilization Studies

Often appraisers are required when townships are planning certain uses of land, rezoning, implementation of housing developments, traffic infrastructure, cost benefit analysis and a whole host of various projects. The appraiser’s responsibility to deliver an accurate appraisal report is a necessary response to the question of fair market value.

Assumption: The appraised value of a property will vary, depending upon whether the appraisal is conducted for the buyer or the seller.
Fact: The appraiser has no vested interest in the outcome of the appraisal and should render services with independence, objectivity and impartiality.

Assumption: Appraisers are hired only to estimate real estate property values in property sales involving mortgage-lending transactions.
Fact: Depending upon their qualifications and designations, appraisers can and do provide a variety of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

Assumption: Market value should approximate replacement cost.
Fact: Market value is based on what a willing buyer likely would pay a willing seller for a particular property, with neither being under pressure to buy or sell. Replacement cost is the dollar amount required to reconstruct a property in-kind.

Assumption: Assessed value should equate to market value.
Fact: While most provinces support the concept that assessed value approximate estimated market value, this often is not the case. Examples include when interior remodeling has occurred and the assessor is unaware of the improvements, or when properties in the vicinity have not been reassessed for an extended period.

Assumption: Appraisers use a formula, such as a specific price per square foot, to figure out the value of a home.
Fact: Appraisers make a detailed analysis of all factors pertaining to the value of a home including its location, condition, size, proximity to facilities and recent sale prices of comparable properties in the subject market area.

Assumption: Because consumers pay for appraisals when applying for loans to purchase or refinance real estate, they own their appraisal.
Fact: The appraisal is, in fact, legally owned by the lender – unless the lender “releases its interest” in the document. However, consumers may obtain a copy of the appraisal report from their lender who had ordered the report.

Assumption: In a robust economy – when the sales prices of homes in a given area are reported to be rising by a particular percentage – the value of individual properties in the area can be expected to appreciate by that same percentage.
Fact: Value appreciation of a specific property must be determined on an individualized basis, factoring in data on comparable properties and other relevant considerations. This is true in good times as well as bad.

Assumption: Consumers need not be concerned with what is in the appraisal document so long as it satisfies the needs of their lending institution.
Fact: Only if consumers read a copy of their appraisal can they double-check its accuracy and question the result. Also, it makes a valuable record for future reference, containing useful and often-revealing information – including the legal and physical description of the property, square footage measurements, list of comparable properties in the neighborhood, neighborhood description and a narrative of current real-estate activity and/or market trends in the vicinity.

Assumption: An appraisal is the same as a home inspection.
Fact: An appraisal does not serve the same purpose as an inspection. The appraiser forms an opinion of value in the Appraisal process and resulting report. A home inspector determines the condition of the home and its major components and reports these findings.

Assumption: You generally can tell what a property is worth simply by looking at the outside.
Fact: Property value is determined by a number of factors, including location, condition, improvements, amenities, and market trends.