The purpose of obtaining an appraisal is to have a professional determining the current value of a property. The definition of a market value is the highest price in terms of money which a property will bring in a competitive and open market under all condition requisite to a fair sale, a buyer and seller, each acting prudently, knowledgeably, and assuming the price is not affected by undue stimulus.
Real Estate Appraisals Canada
There are guidelines for a professional appraiser to evaluate the current market value. Each appraisal shall contain a supporting value.
These are the following minimum requirements:
1. Full description of the property.
2. The purpose of the appraisal.
3. Definition of the rights and the value estimated.
4. The date of appraisal
5. Pertinent zoning.
6. The estimated highest and the best use of the subject property.
7. A reasonably documented and factually supportive value conclusion based upon one approach to value considered
8. Reasoning for supporting the value.
9. The special and limiting conditions
10. The final estimate of the value
11. The appraiser certificate and signature including his designation.
In addition to completing the appraisal, the following issues must be considered:
1. The date of inspection
2. Inspection of the property
a. Drive by inspection
b. Thorough inspection of property.
3. Comments about the interior and exterior look of the property, stating assumptions
4. If applicable, state rental income, lease date or statement of assumptions.
5. Definition of value stated
a. Market value
b. Forced sale value with terms
c. Forced sale value on cash basis
6. Final conclusion stating the value.
These guidelines are the minimum requirement to receive a professional appraisal.
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The above information is provided as a guideline and is not intended to give a professional legal advice. Please consult a real estate lawyer for their opinion on your particular case
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