Often one of the lesser costs of acquiring and financing a home is the residential appraisal. An appraisal is often required for conventional mortgages where your borrowed amount represents a significant percentage of the property value. It may occasionally be required for a CMHC or Genworth insured mortgage as well. According to the BC Association of the Appraisal Institute of Canada, “an appraiser provides you with an impartial estimate of opinion of value of real estate. The appraisal is usually a written document setting forth an opinion of value for an adequately researched property as of a specific date and supported by the presentation and analysis of relevant data”.
An accredited appraiser provides support, advice and valuations on real property….and is a trained professional who observes, researches and analyzes the real estate market, taking into account the myriad of contributing factors that affect value. Appraisers are interested in facts, and will thoroughly investigate the property being researched. In order to do the job to the best of their ability, they keep abreast of current market trends, the general value of real estate in the area, taxes and special assessments.
The primary benefit of an appraisal to all parties to a purchase and mortgage transaction is the assurance of a fair market value arrived at using a scientific and artful process by a qualified professional. The cost of an appraisal starts at $250.00 (April 2009) and goes up from there depending on the complexity of the property.