In the previous blog, we touched upon the various key elements that are considered while understanding a valuation process. Along with possessing knowledge on the dynamics of the real estate market, it is equally important for the AIC appraisers to have constructional skills that are fundamental to their training. Members also rely on industry professionals when the building characteristics get a lot more complex.
Estimating the market value of any property requires the appraiser to be able to complete a thorough inspection process.
The valuation process is quite a complex one. Direct comparison approach: This process involves a detailed comparative analysis of 3-10 or more properties in order to form a reliable estimated market value. Also current active listings to be analyzed – principle of substitution.
As part of the appraisal process, the appraiser will do the following
• It’s the responsibility of the appraiser to schedule a particular time to perform the valuation process. If in the case where property is tenant occupied, sufficient notice needs to be provided to the tenants by the owner with the provision in their lease.
• Collect the ample number of information during the inspection process to provide the client or any intended user. The appraiser needs to give the client a brief of the construction and improvements details of the property.
• It’s always important to provide visual details of the interior and exterior of the property. Exterior and interior photographs are important to get a detailed view of the property and its characteristics.
• The original and important details of the property should be recorded by the appraiser. Such important details include the year of construction, date of other major additions to the property, renovations or any addition of extra features.
• Information about the most recent market activity like sales and listing history of the property(minimum 3 years history required under CUSPAP). The appraiser will also inquire about any listing of the property or any other offers if purchase in the past twelve months.
Conclusion
It requires skill and expert knowledge to be a great appraiser. Always ensure that your appraisals are taken care of by professionals who keep in mind all the key factors of an appraisal process.
At E-Valuates, we take care of all residential appraisals. Our AIC designated appraisers keep in mind the valuation process and ensure that you get professional services without having to face any hassles.
Contact details
Get in touch with us at ( +1 (647) 297-5636 )