The purpose of an appraisal is to help someone to make a decision in the purchase, sale, insuring, lending, or taxation of real estate. Questions you might find useful include: You should also feel comfortable asking more general questions if there is anything you do not know or do not understand about the process of hiring an appraiser and having an appraisal done. Keep in mind, though, that if you use an appraiser your real estate professional recommends, your real estate professional may receive a referral fee from that appraiser. When you work with a licensed real estate or mortgage professional, you're protected by RECA's Consumâ¦ twitter.com/i/web/status/1â¦ via @RECA, Mortgage Managing Brokers: before September 30, you need to complete the Mortgage Broker Update 2020 - Managing Morâ¦ twitter.com/i/web/status/1â¦ via @RECA, All industry professionals can officially start their license renewal process. How long has the appraiser been working in real estate appraisal? Have a great long weekend! Generally, fair market value is used in the calculation. An appraisal report will have specific details about the â¦ For example, a property may actually be worth in the region of $300,000 but the seller may have an inflated idea of its value and insist on putting it on the market at $350,000 — or he may have been guided to set the price high by an especially greedy agent who wants a higher commission. Get starâ¦ twitter.com/i/web/status/1â¦ via @RECA, Just receive an offer on your home? Real estate appraisers provide a valuation of a property. appraisals to support decisions pertaining to the use and disposition of real estate and the rights inherent in ownership. Allâ¦ twitter.com/i/web/status/1â¦ via @RECA, Industry pros: 1/3 of industry professionals have already renewed their licence for 2020-21! No personâ¦ twitter.com/i/web/status/1â¦ via @RECA, Industry pros: Today is the LAST day to complete your #LicenceRenewal for the 2020-2021 year! See the latest disciplinary decisions issued by RECAâ¦ twitter.com/i/web/status/1â¦ via @RECA, #DYK Whether you're viewing or hosting a property viewing, RECA has Viewing Checklists available to ensure you're tâ¦ twitter.com/i/web/status/1â¦ via @RECA, The myRECA system is back up and running! What industry organizations does the appraiser belong to? If you default on the loan, forcing the lender to foreclose on the property and sell it, the lender wants to know that there’s enough equity in the property to get its money back. Once you have picked appraisers whose services you want to consider, ask them for an interview. Appraisals are used to determine the estimated market value of real property. Be cautious when you're processing new, existing, and reinstating liceâ¦ twitter.com/i/web/status/1â¦ via @RECA, Heads up! There are a number of reasons why a buyer may gladly pay a price that’s lower than the property’s value. Real estate professionals are often asked whether there is a difference between a valuation and appraisal. Negative adjustments are made to a comparable property when the comparable is superior to the subject property. Cast your vote now using thâ¦ twitter.com/i/web/status/1â¦ via @RECA, Voting for the #IndustryCouncilElections closes at 5pm today! Members of the Appraisal Institute of Canada (AIC) are required to include: Other professional appraiser associations have similar requirements of their members. There is a difference and it is important to know when a formal valuation is required as opposed to obtaining an appraisal. Please remember: safetyâ¦ twitter.com/i/web/status/1â¦ via @RECA, Condo Owners and Renters: Join RECA Wed, Sept 30 from 7-9pm for a webinar on the proposed new regulations forâ¦ twitter.com/i/web/status/1â¦ via @RECA, Industry pros: There's only one week left to #RenewYourLicence. Are you interested in becomâ¦ twitter.com/i/web/status/1â¦ via @RECA, #FridayFact: In Alberta, real estate professionals can have a licence that allows them to work in a type â or multiâ¦ twitter.com/i/web/status/1â¦ via @RECA, Are you looking to buy or sell a home this winter? Private sales or for transactions not listed on a listing database, Non-sales transactions, such as refinancing or renovation loans, estimate the value of the vacant site (land value), estimate the cost of replacing the current building and add this to the land value to get the total value of the new building, estimate the depreciation of the existing building and subtract this from the cost of replacing the current building (the total value), the end result is the market value for the building. A buyer with a firm grip on valuation will understand that $350,000 isn’t a fair market comparison for that property, and refuse to cough up. The result is the net income from the property. As a seller, you'd have a number of obligations toâboth to the real estate profesâ¦ twitter.com/i/web/status/1â¦ via @RECA, Industry pros: There is only 1 hour left to vote in the 2020 #IndustryCouncilElections. Check out the award-winning COVID-19 material and resources here:â¦ twitter.com/i/web/status/1â¦ via @RECA, The COVID-19 pandemic is ongoing in Alberta. Each of these associations sets their own standards for education and training required to become a member in good standing. See the latest disciplinary decisions issued by RECA:â¦ twitter.com/i/web/status/1â¦ via @RECA, Getting ready to sell your home? Why? pic.twitter.com/mBtxnGAoHe via @RECA, #FridayFact Every time an industry professional enters a property for any purpose the professional must ask and havâ¦ twitter.com/i/web/status/1â¦ via @RECA, Industry professionals, you must pay your licensing fee in full on or before September 30th. A 5% range on value is common even among seasoned appraisers, and is recognized as reasonable by the Appraisal Institute. Once the seller accepts an offer from a buyer, the lender will require the home be appraised by a professional real estate appraiser. The purpose of an appraisal is established by the client. Though a real estate agent can also provide help in this regard, an independent appraisal is a further safeguard that a property will be priced appropriately. Why should I get a property appraisal? Learn how the Real Estate Râ¦ twitter.com/i/web/status/1â¦ via @RECA, GoA has declared a Public Health Emergency, and unveiled new COVID-19 restrictions. Did you know new regulations for #CondominiumManagement are being discussed? Positive adjustments are made to a comparable property in areas where the subject property is superior. See the 2020 fee schedâ¦ twitter.com/i/web/status/1â¦ via @RECA, #DYK? CONSUMER TIP: Comparative Market Analyses (CMA) your real estate professional might use to assist your decision on a listing price ARE NOT real estate appraisals. So, who has a hand in deciding a property’s value? We will reopen at 8am on November 12th. Before accepting, it's important to familiarize yourself withâ¦ twitter.com/i/web/status/1â¦ via @RECA, #FridayFact Consumers must sign a written service agreement (WSA) to enter into a client relationship with a licensâ¦ twitter.com/i/web/status/1â¦ via @RECA, #TheRegulator is available now! Whether buying or selling, consider using an authorized real estate appraiser as part of the process to protect yourself and your investment. Current licensees, incl condo mgrs w/ a temp licence will receâ¦ twitter.com/i/web/status/1â¦ via @RECA, Candidates for Industry Council Elections have been announced. Appraisers use selective market research and various analytical techniques to determine the market value of a property. The goal of the interview is to find an appraiser who is going to meet your needs. The purposes of the two appraisals are quite different, however. The Appraisal Defined Professional real estate appraisers perform a useful The goal of an appraisal â¦ A real estate appraiser will give a completely independent evaluation of a propertyâs value, independent from any transaction that may follow or result from their report. Join the publâ¦ twitter.com/i/web/status/1â¦ via @RECA, #FridayFact Not everything you see during viewings automatically comes with the property. Sales data report. Valuation is also necessary because most people fund their investments through some sort of financing, like a mortgage. Fair market value (FMV) is an important concept in the valuation and exchange of real property and other property. They will use an appraisal prepared by a licensed real estate appraiser. Scammers often take advantage of tough economic timesâ¦ twitter.com/i/web/status/1â¦ via @RECA, #abre #realestate #realestateagent A list of references you can contact to gain information about the quality of services provided by an appraiser is a good indication that previous clients have been happy with the work done. This approach is most useful when there are few comparable properties to be used for a direct comparison approach, such as with luxury homes or recreation properties. Review candidate bios and endorsement information atâ¦ twitter.com/i/web/status/1â¦ via @RECA, With provincial #COVID19 cases on the rise, RECA, with support from the local Boards/Associations and AREA, is recoâ¦ twitter.com/i/web/status/1â¦ via @RECA, There's only one more day to weigh in on the proposed #StandardsofPractice (rules) for Alberta condo managers. Value is easy, right? â¢ â¦ Adjustments to reflect the characteristics of property valued Once an appraiser has determined which comparable properties will be used, adjustments are made to take into account features that differ between the subject property and the comparables. have sold recently (preferably within 90 days); be from the same or a similar neighbourhood. â¢ Identified comparable transactions have to be adjusted for the following value drivers (amongst others): â¢ location â¢ age & condition â¢ quality of tenants and cash flow (WALT) â¢ size (number of floors, net area) â¢ type of use (office, retail, etc.) Does the appraiser have experience with other properties in your area and/or similar types of properties? Make sure you understand what the sale could mean for current contracts (includingâ¦ twitter.com/i/web/status/1â¦ via @RECA, Industry pros: The Nomination Period for Industry Council Elections is now open! Congratulations! linkedin.com/posts/tracey-câ¦ pic.twitter.com/l15Vm1hGDa via @RECA, Albertans: Do you own or live in a condo? The appraiser bases the appraisal only on the exterior appearance of the property. Certain taxing entities use assessment data based on their own appraisals to determine local property taxes. It’s the price you pay for a property? Here it depends on for what purpose the appraisal is being doneâyou can certainly hire an appraiser to give you a market value opinion (e.g. Itâs best not to think of appraisals as pin-point measures of accuracy, despite their usual presentation in a full appraisal report as a singular value. FOR THE VALUATION OF REAL ESTATE ASSETS (01/01/91) GUIDANCE NOTE 3: ACCOUNTING FOR SPACE MARKETING COSTS In the traditional application of the Direct Capitalization test of valuation, appraisers usually exclude consideration of tenant inducements, free rent periods and leasing commissions (such costs, taken together, generally being referred to as Space Marketing Costs) in â¦ Real estate appraisals and tax appraisals of real estate both involve estimating a monetary value for real property, often a house and its lot. A buyer may also be willing to pay more than a property’s market value in order to secure a particularly attractive investment in a highly competitive market. Lenders need to be sure the house is worth at least the mortgage amount so if they have to sell it in foreclosure they won't take a loss. Check references.Â Do not hesitate to ask an appraiser for references. Most appraisals calculate the propertyâs value on the date of â¦ Well, it’s not quite that simple — price and value aren’t always the same thing. Are you having difficulties processing your renewalâ¦ twitter.com/i/web/status/1â¦ via @RECA, #TuesdayTip Are you new to the industry since Oct 1 2019?