1. What is it an Appraisal?

Buying property is the single largest investment most Canadians make in their lives. As a result whether you are looking for a family home, or purchasing property as an investment, knowing the value of the real estate is absolutely critical. An Appraisal is a formal, impartial estimate or opinion of value that is usually written, of an adequately described property, as at a specified date and supported by the presentation and analysis of relevant data. It is prepared for reliance by the identified parties in the appraisal and for whom the appraiser accepts responsibility.
The valuation process begins with a discussion between the appraiser and the client to ascertain the intended purpose of the appraisal, the property's location, how access can be obtained, etc. The appraiser then defines the appraisal problem and the scope of work needed to complete the assignment. Once the property is inspected most of the appraiser's time is spent in the office researching the market and preparing an Appraisal Report.
While professional standards may not dictate the form, format or style of reporting, the appraiser is bound by certain recognized rules as to content. The extent to which this content is detailed will determine the appropriate type of appraisal report to be prepared. Typically types include a bound narrative - from concise and briefly descriptive to comprehensive and detailed - and a form report generally used to support a residential mortgage application.