Appraisal Info

WHAT IS AN APPRAISAL

“An appraisal is a formal, impartial estimate or opinion of value, usually written, of an adequately described property, as of a specific date, and supported by the presentation and analysis of relevant data. It is prepared as a result of a retainer, for reliance by identified parties, and for which the appraiser accepts responsibility.”

WHAT IS MARKET VALUE

“Market Value is the most probable price in terms of money which a property should bring in the competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimuli.”

HOW IS VALUE ESTIMATED

“There are three basic methods at arriving at an indication of value.

• Direct Comparison Approach - is based on the theory that an informed purchaser would pay no more for a property than the cost of acquiring another existing and equivalent property. The value estimate is based on the selling price and listings of comparable properties.
• Cost Approach - estimates the cost to build a new building identical to the subject being appraised, at current prices, subtracting accumulated depreciation and adding the estimated land value.
• Income Approach - relates to income-producing property and is based on the theory that value is the present worth of the income stream which the property is capable of producing when developed to its highest and best use. The net operating income from the property is capitalized into value by an appropriate method and rate.

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.

THE VALUE OF A PROFESSIONAL REAL ESTATE APPRAISAL

In a complex property market that is constantly changing, you need unbiased and accurate market values for your real estate. Every residential and commercial property has characteristics that make it unique. Appraisals require specialized and current knowledge and analysis. At Accumark, we understand the importance of real values.

We have the experience and credentials at Accumark Appraisals to help you make informed choices on real estate matters. Our appraisers are members of the Appraisal Institute of Canada with professional liability insurance and are licensed under the Real Estate Council of Alberta. All reports are completed in accordance with the rules, ethics, and standards of these professional associations.