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.
When an appraiser goes to determine the fair market value of a property, they will use different approaches (or methods). If you are dealing with single family houses, you’ll probably only see appraisals that use the Comparable Market Analysis (CMA). You may find that how you determine the value is lot more different than professionals
The price of land can drastically change depending on the purpose it used for, infrastructure changes in the city around it. When changing a piece of land from agriculture to commercial use, you can multiply your profits by as much as 10 times the original amount.
Forced Appreciation in Canadian Real Estate
Even though houses increase in value over time, there are Ways To Increase Value Of Property to force and speed up the process. This can be done by a method called forced appreciation. Forced appreciation is the process by which you buy a house and do small but productive work to the house and/or property to increase either selling price or the monthly renting fees.