December, 2022

One of the most frequently asked questions we get asked is "what is an appraisal?"

An appraisal is an independent, formally presented opinion of a property's value. This value is estimated by skilled appraisers who are unbiased and impartial in their judgements.

Estimating the value of a property helps the intended user determine what a home is worth. While appraisals are often done in connection with banks for mortgage financing, appraisals are completed for a variety of reasons such as capital gains, litigation, division of assets, estate planning etc. (Click here to discover for more reasons to get an appraisal!)

WesTech’s professional valuation expertise provides our clients with a personalized service that aids them in making sound real estate decisions. All of our appraisal reports are prepared or reviewed by fully accredited members of the Appraisal Institute of Canada, the Real Estate Institute of British Columbia and the Canadian National Association of Real Estate Appraisers.

WesTech defines residential appraisal as an independent formally presented opinions of a property's value. This value is estimated by skilled appraisers who are unbiased and impartial in their judgements. 

Are you being relocated for your job? Why is a relocation appraisal necessary? How is it different than a mortgage financing appraisal?

An appraisal can be completed by one of three appraising methods: the cost approach, by direct comparison, or the income approach. According to Steven Coull, the executive director of the Canadian Association of Real Estate Appraisers, the first two methods are used to value residential homes for appraisals (including relocation appraisals), with an emphasis on the direct comparison approach. The direct comparison approach uses recent sales or active listings in the area, to make adjustments and determine an estimated value for the property.

Now you may be thinking “I just had an appraisal done a couple of months ago when I refinanced my home. Why do I need to have another one done now that I am being transferred?”. To answer this, let’s look at the difference between a relocation appraisal and a mortgage financing appraisal.

Simply put, a relocation appraisal is done in a more detailed appraisal format, often requiring more narrative descriptions as opposed to just ‘ticking the boxes’. A mortgage financing appraisal typically asks the question “What is the fair market value for this home, today?”, whereas the relocation appraisal is written with the question “What will the home likely sell for in the forecasted market, in a reasonable time period?” in mind.

The relocation appraisal has a more comprehensive market analysis than the mortgage financing appraisal, and provides comments on the current market trends in the neighbourhood. It also requires a detailed commentary on the comparable sales and listings used in the appraisal.

WesTech Appraisal Services’ appraisal team has considerable experience in the valuation of property for the purposes of employee relocation. We are very familiar with the minimum requirements for relocation appraisals and can complete your report on a variety of Canadian industry relocation forms. Come check us out or contact us at (604)-986-2722 .