A real estate appraisal is a comprehensive analysis and report detailing the value of a specific real property. Real estate appraisal reports examine many factors that influence the value of a property, to come up with an opinion of property value.

If the real estate appraiser’s assignment is to determine Market Value, then it must also be based on the Highest and Best Use of the real property.

Highest and Best Use (HBU) is foundational to the appraisal process. It is a process to determine what use produces the highest value for the property. There are four steps to the process. First, the appraiser determines all uses which are legally permissible for the property. Second, of the uses which are legally permissible, which ones are physically possible. Thirdly, of those which are both legally permissible and physically possible, which ones are financially feasible. And finally, of those uses which are financially feasible, which use is maximally productive for the site. The outcome of this process is the highest and best use for the site. A market value real estate appraisal implicitly assumes that a buyer intends to use the property in its highest and best use. This use, therefore, drives the value equation

Often, you will be notified by a banker, lender, or mortgage broker that a real estate appraisal is a prerequisite for monetary lending or a mortgage. Real estate appraisals are also often required before bank loans are approved for renovation purposes.

There are a multitude of reasons, other than for financing, why you might need or want an real estate appraisal. The Appraisal Services section of our website features a comprehensive list of appraisal purposes

Appraisal reports vary significantly depending on the purpose, scope of the assignment, and needs of clients and intended users. The form or format of each real estate appraisal report may vary depending on the property type, but all appraisal reports must be completed in compliance with professional standards such as the Uniform Standards of Professional Appraisal Practice (USPAP).

Credible real estate appraisals clearly identify the property appraised, the scope of work performed by the appraiser, the client and other intended users, and the intended use of the report.

At Benchmark Real Estate Appraisals, we develop appraisal reports with levels of detail beyond the minimum requirements. That allows our clients and intended users to clearly understand the process, available data and analysis, logic and methodology utilized to develop the opinion of value.

An Appraisal from Benchmark Real Estate Appraisals provides you with a comprehensive report which analyzes your property and provides you with an accurate estimation of the value in current market conditions. In general, a typical appraisal looks at the size and location of the home, the number of rooms, as well as the types of upgrades in the home and, considers several other factors to come up with a numeric value.

A Home Inspection gives you information regarding the structural integrity of the home, the condition of plumbing, electrical, and mechanical systems within the home, and other factors of that nature. A Home Inspection DOES NOT provide you with an estimation of the current market value

A real estate appraisal will give you an accurate estimation of the current market value of a home.

Realtors commonly provide a Comparative Market Analysis (CMA). This is a tool that realtors use to aid the homeowner in understanding the price range that the home might sell for if listed for sale. It is a tool utilized to gain the listing. If the estimate was incorrect, the realtor may negotiate with the seller to lower the price offering. On many occasions, the price is lowered multiple times until a competitive price is found. A CMA cannot be used or developed for any reason other than in the process of selling the property. That is why the Courts, Canada Revenue Agency, financial institutions and others will only rely on an appraisal completed by a certified and licensed real estate appraisal professional.

Many clients look at their property assessment and tax bill and assume that the number provided (Assessed Value) represents the current market value. Still others think that the assessed value is always low, or always high, and try to form their own opinion as to the market value of their property.

While there are a few instances where the Assessment Value might equal, or be very near, the current market value, it is important to understand that this would only be a coincidence as both values are unique and are done for different purposes at different points in time.

A real estate appraisal is done to determine the current market value of a specific property on a specific date.

Municipalities assess each property annually to distribute fair and equitable taxation. The estimated value of each property comes from the measurement, analysis and interpretation of the real estate market and is governed by the Municipal Government Act. This process is based on mass appraisal models that are mathematical expressions of how supply and demand factors interact on groups of properties in the real estate market. This expression is then applied to each property to develop the assessed value. This value is then utilized to develop the tax amount payable (by multiplying the assessed value by the Mill Rate).

In Alberta, the current property assessment notice indicates the respective municipality’s estimate of your property’s market value (the amount it would have sold for in the open market) on July 1 of the previous year. It is also adjusted for any changes in physical condition as of December 31 of the previous year.

Assessors have likely not seen the interior of each property they have assessed and in some instances, the exterior has not even been reviewed recently. As a result, it is impossible for an assessor to accurately consider recent property improvements or the property’s current condition, including deferred maintenance or the need for important repairs. Again, much of their information is taken from public records and may not necessarily be current or accurate for estimating current market value.

If the assignment requires the real estate appraiser to physically view the subject property, the onsite viewing process may take anywhere from a half hour to several hours depending on the property type.

Typically, the viewing process for urban residential properties is at the lower end of the time frame range whilst properties such as agricultural holdings with multiple buildings can take hours.

Similarly, the development of the opinion of value and report varies substantially with the property type and scope of the real estate appraisal assignment. Typically, residential property valuations can be completed within two to four days while commercial, agricultural and complex assignments may take several weeks.

The cost for a real estate property valuation can vary substantially. Factors that impact the cost of a real estate appraisal include the purpose of the appraisal, the property type, property location including driving times, complexity of the assignment, and the timeline given to complete the report. To develop a quotation, we will need to gain an understanding of all of these factors. For a quotation of services, please contact us! You can use our website to get a quote or simply give us a call at (403) 547-6434.

Benchmark Real Estate Appraisals endeavors to be as flexible as possible.

Many of our clients choose e-mail transfers. Others utilize credit cards including Visa, Mastercard, and American Express.

Still, others choose a corporate cheque as a method of payment. Our preferred corporate clients enjoy the ability to be invoiced and make payment within 30 days.