About Real Estate appraisals

Zoltan PadarFirst Mortgages, Free Advice, Private lender

Land valuation, property valuation, and real estate appraisal are methods of establishing the market value of real estate. 

In contrast to corporate stocks, which trade daily and are identical, real estate transactions are rare and each property is unique (especially its condition, a key factor in valuation). Location plays an important role in valuation as well. A home’s value is often affected by upgrades or improvements, since property cannot be moved. The appraised value of real estate is used to determine mortgage loans, to settle estates and divorces, to determine taxes, and many other factors. The sale price of a property is sometimes determined based on an appraisal report.

Canada require appraisers to have a license in order to practice. This can vary from. As a real estate appraiser, you can become Appraisal Trainee, Licensed Appraiser, or Certified Appraiser. A minimum of 2000 hours of experience is required for the second level license and 2500 hours of experience must be obtained within 24 months for the third level license. Appraisers are often referred to as “property valuers” or “land valuers”. In British English, they are called “valuation surveyors”. A market value appraisal must also consider the highest and best use of the real property if based on market value. A standardized form, such as the Uniform Residential Appraisal Report, is generally used to report mortgage valuations of improved residential properties in Canada. Commercial property appraisals (such as income-producing, raw land) are generally reported in narrative format by Certified General Appraisers.

The seller often does not generally get a copy of the appraisal, but they can request one. The CRES Risk Management legal advice team noted that an appraisal is material to a transaction and like a property inspection report for a purchase, it needs to be provided to the seller, whether or not the sale closes.

MortgagePRO Ltd is a licensed mortgage brokerage with mortgage professionals experienced not only traditional mortgage financing, but have a vast knowledge of Private Mortgage Lenders. Its principals not only mortgage brokers, but also seasoned mortgage lenders, real estate investors for decades. Contact your mortgage advisor Zoltan [email protected] or call 403-253-2022