What is Residential Real Estate Appraisal
Real Estate Appraisals are conducted to arrive at a Value not only for selling or buying property but also for issues such as Mortgage Financing, Estate Planning, Capital Gains Tax issues, Property Tax Assessment Reviews/Appeals, Relocation (decisions and solutions), Construction and even Legal Matters such as Divorce and Nuptial Agreements.
The role of Residential Real Estate Appraisers everywhere is to make an assessment of value that is both realistic and fair.
Value per se is intrinsic and linked to factors such as the cost of building the property and the cost of acquisition. Appraisal, whether it be residential appraisals Toronto, or by independent appraisers Ottawa, takes into account many additional factors. These include for instance: whether the sale is a distress sale, estimates or real data on depreciation, trends by way of future appreciation and so on.
Sellers face the dilemma of determining a price tag – too high and they will not get a buyer. Buyers face the quandary – is it worth the buy? Expert appraisal solves this problem for both parties. Appraisals lead to the formulation of more realistic figures and should both parties have conducted appraisals the figures arrived at would be quite similar – enabling the deal to go through.
For issues other than sales-purchase, appraisals provide ammunition for the owner to take on the other party, whether Tax Authority or in Court.
The process of Appraisal to arrive at a fair or realistic value has three basic approaches. But this has become increasingly sophisticated and companies like UCAS with trans Canada presence established over more than 20 years may apply any of a number of variants.
Appraising single-family homes: the usual method is the Sales Comparison Approach or the Market Data Approach. This depends on data availability i.e. when a number of similar or comparable properties have been recently sold in the area. Otherwise, adjustments have to be made based on data and trends from other areas or regions).
Appraising Estates: Without any data to go on, the method of valuation shifts to the Cost Approach, where separate estimates are made for land and building(s) and adjusted for depreciation.
Appraising for Investment: When the purchase is for investment purposes viewing future appreciation the method of valuation will be versions of the Income Capitalization Approach involving factors such as rate of return for the investor, its actual (and potential) income generation and operational costs.
With the wealth of data and expertise at their disposal UCAS will respond very quickly once you have communicated your case. Their fees are reasonable and commensurate with its complexities.
Entrust our team with your appraisal directives for your property. Approved appraisal of residential, commercial, institutional, agricultural property, etc. Enquire now for a free consultation & quotation.
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