Frequently Asked Questions

 What is an appraisal?

A formal opinion of value prepared as a result of a retainer, intended for reliance by identified parties, and for which the appraiser assumes responsibility. An appraisal involves selective research into appropriate market areas, the assemblage of pertinent data, the use of appropriate analytical techniques, and the application of knowledge, experience and professional judgement to develop an appropriate solution to an appraisal problem. The appraiser provides the client with an opinion of real property value that reflects all pertinent market evidence.

(Source: Canadian Uniform Standards of Professional Appraisal Practice)

The appraisal is provided in a standardized report format with all supporting market data and property documentation.

What does an appraiser do?

A professional real estate appraiser provides an objective, informed opinion of value supported by the presentation of relevant data. In doing so, the appraiser usually visits the property and will thoroughly document it with pictures, measurements and field notes. He or she then carefully compares the subject property to other comparable properties and makes dollar adjustments to reflect the differences between them.

Good appraisers are thorough, knowledgeable, experienced and objective and must adhere to a strict code of ethics and the standards as set out in the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP). Please refer to the Appraisal Institute of Canada for more information.

What is the difference between an Appraisal and a Home Inspection?

Advanced Real Estate Services will inspect your home on the basis of size, rooms, general condition, location, topography, etc., to form an overview of your property in order to compare it to similar properties sold in the area. A home inspector will look at wiring, plumbing, mechanical systems, roofing, etc., to advise a home-buyer of the condition of those elements of the home but will not provide an opinion of value.

What is the difference between a realtor’s CMA (Comparative Market Analysis) and a real estate appraisal?

 Both reports indicate an opinion of market value. However, an appraisal by a certified real estate appraiser is an unbiased, supported and legally binding opinion of value. A realtor’s CMA may demonstrate the most “optimistic” sale price for your home under ideal conditions and could be biased in order to obtain a listing. At the same time, a realtor’s CMA may be less than market value greatly reducing marketing time/effort required to sell your home.

Consider this as well, if you are a buyer, would your commissioned realtor tell you if you were paying too much? A good realtor should provide you an honest, realistic market analysis of the property you are selling or buying and should bargain to get you the best price. Choose your realtor wisely. We recommend you always get a certified real estate appraisal – the cost of the appraisal is a mere fraction of what it may cost you in the long run.

 How is value estimated?

There are three basic methods used to arrive at an indication of value:

  • The 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.
  • The 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 & Best Use. The net operating income from the property is capitalized into value by an appropriate method and rate.
  • The Direct Comparison (Comparative) 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 offerings of comparable properties in the subject’s market. To arrive at a final conclusion 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.

What does an appraisal report Contain?

All full appraisal reports contain the following:

  • Identification of the client
  • an estimate (or opinion) of value
  • The effective date of the appraisal
  • The purpose of the appraisal
  • The qualifying conditions
  • The description of the neighbourhood
  • An identification of the property and its ownership history.
  • An analysis and interpretation of the data and the assumptions made
  • The processing of the data by one or more of the three approaches to value (direct comparison approach, cost approach and income approach).
  • The certification and signature of the appraiser
  • Supporting material such as maps, floorplans, charts, photographs, etc.

How long does an appraisal take?

 After we inspect the property, it usually takes about one to two business days for standard appraisals. There are often circumstances beyond our control that may delay the appraisal process but we will keep you up to date.

What qualifications do appraisers need?

 Critical thinking and analytical skills are essential for individuals involved in formulating opinions who work in consulting and advisory capacities. Appraisers need to be able to make prudent judgments and independent decisions. They must be skilled in gathering and evaluating facts, and must understand how to access the variety of data sources that are needed for comparisons and analysis. Technical competence in reading survey drawings and blueprints and identifying construction features and materials is applied in many situations. Mathematical skills are a strong asset for both the technical aspects of inspections and the analysis of markets; strong written and verbal communication skills are also necessary for producing clear, concise reports and for dealing with clients on a daily basis.

Where do appraisers get their information from?

 Appraisers obtain information from a variety of sources and databases and are most often required to pay for the information that they require. The most widely used database is the MLX change system provided by the Greater Vancouver/Fraser Valley Real Estate Board. The public may know it as the Multiple Listing Service (MLS). Appraisers may also hold accounts with British Columbia Land Titles Office as well as various departments in local municipalities.

 How much does an appraisal cost?

Our appraisal fees vary depending on a number of factors such as:

  • Type of appraisal: Full, Drive-by, Desk top?
  • Purpose of Appraisal: Refinance, Litigation purposes, Tax (capital gains) purposes etc.
  • Size of the property – large properties require more on-site time and may be more research intensive.
  • Distressed Properties: Building Envelope Concerns (Leaky Condos), Grow Ops
  • Two values required? “As is” and “as improved” for example.
  • Is the property unique (more research intensive)?
  • Do you need the appraisal in a rush? An extra rush fee may be applicable.
  • Is the property in the greater Greater Vancouver / Fraser Valley area or is there travel time involved?

We are NOT a low-cost, high volume “appraisal mill”. Our fees are competitive,  reports are detailed and carefully managed. Our fees are always subject to change but generally you can expect the following:

  • Full Appraisal (our most comprehensive): $275 – $375 +GST.

 This is the most popular appraisal type and is the standard for most lending institutions. It requires a full interior and exterior inspection of the subject property. In doing so, this option provides the appraiser the most in depth understanding of the subject property and ultimately results in the most supportable and credible opinion of value.

 This pricing option covers the vast majority of residential properties in Greater Vancouver area as well as Fraser Valley.

 How should I prepare for the appraisal of my home?

 We appreciate that many homeowners may not be the best housekeepers at times. A good appraiser can see beyond basic clutter and does not expect your home to be in “show home” condition. However, access to each room and visual inspection should not be impeded by personal belongings. Please make every effort to make sure the appraiser has sufficient access throughout the property so he or she can document it in its entirety.

 If occupants are working nights and sleeping during the day, or if there is a tenant-occupied basement suite please make appropriate arrangements so that these areas can be inspected. Otherwise, the appraiser will have to make qualifying statements in the report which may affect a lender’s willingness to loan against the property or a lawyer’s requirement for a full detailed appraisal report.

The following information can be very useful to the appraiser. Please provide the following if available:

  • A list of past and present upgrades or problem areas you may feel are relevant
  • Any home sales in the area that you think may be a relevant comparable to your home.
  • Copies of previous appraisals
  • Home inspection reports
  • Copy of past or present sales agreements
  • Copy of your building plans / blueprints

Why use a Designated Appraiser?

The Mission of the Appraisal Institute of Canada is to protect the public interest via supporting their members through ensuring they get a high standard of education and hands on experience before obtaining a designation with the Institute.  With this basis and continuing educational requirements, combined with requiring errors and omissions insurance, a client of a Certified Appraiser can be  assured that a high standard of professional real estate and related property advisory services can be obtained.  To have a Designated Appraiser undertaking your appraisal reports allows you to be confident that you are provided the most accurate valuation of your property for the purpose that the appraisal is intended.

What certifications do your appraisers have?

 The CRA (Canadian Residential Appraiser) is owned by the Appraisal Institute of Canada (AIC) which was established in 1938. The AIC is considered the most widely recognized appraisal organization in Canada and has the highest educational standards for its members. These accreditations are awarded after the appraiser has completed the required real estate courses, mentorship period, and final examination as mandated by the AIC. A degree is currently required to obtain the CRA designation.  CRA members can use their designation only in connection with individual undeveloped residential dwelling sites and dwelling sites not containing more than four self- contained family housing units. We also carry professional liability insurance and are licensed by the Real Estate Council of British Columbia.

 What if I disagree with the outcome of the appraisal?  What can I do?

 At Advanced Real Estate Services Ltd. we value working relationships and strive to manage our clients’ value expectations both before and after the appraisal inspection with clear communication. Unfortunately, as we are in the “opinion business”, it is inevitable that disagreements happen on occasion. However, you can be assured that you are receiving a well- documented, objective and supportable appraisal of the property that has been reviewed carefully.

We are happy to consider any additional information that you think is relevant and we will not hesitate to adjust the value of the property so long as the information is verifiable and relevant to the property being appraised. If we suspect or observe something during the appraisal process that may greatly affect the outcome we will advise you in advance. We cannot provide refunds or alter appraised values simply because the appraised value does not meet expectation.

For a free consultation or quotation:

  • Call (604) 816-4516 and speak with one of our representatives
  • Or go to Request a Quote to request a quotation