What is an appraisal?

An appraisal provides an unbiased opinion of market value as of a given date in time. Market value is an estimate of the most probable price that a property should sell for in a competitive and open market as of the specified date. It is essentially what a buyer might expect to pay (or a seller might expect to receive) for their residential property if it were exposed to the open real estate market for a reasonable length of time; and if the price represents the normal consideration for the property without any special or unusual financing options. In other words, what a stranger would pay for your house if it was properly marketed, not what your family would want to pay!

What can I expect?

A trained appraiser will provide you with a quote either over the phone or by email based on your home’s location, size, features and the purpose of the appraisal. The fee is typically a flat fee determined by the complexity of the assignment and the number of hours required to complete the appraisal. Once you have confirmed that you wish to proceed with an appraisal, an appointment to inspect your home will be scheduled by an appraiser.  The inspection for the appraisal will typically include an exterior and interior inspection of your property and home. The appraiser will take photographs and measurements, as well as obtain necessary details about your home including information on heating/cooling systems, room layout, special features and any updates or improvements to the home/property. After the inspection, the appraisal report will be completed and the final report will be emailed to you.

Is an appraisal the same as a home inspection?

No. Although an inspection of the home is part of the appraisal process, an appraisal is different from a home inspection. A home inspection will provide you with a thorough assessment of the physical condition of your property, including major systems of the house such as the roof, structure, foundation, heating/cooling systems, plumbing and electrical. A home inspection should provide you with a list of items needing immediate repair, a list of items that may need repairs in the future, and estimated costs to repair.

Will the market value of my home be the same as the assessed value?

In theory, the assessed value of your home should be the same as the market value. However, this is not always the case. The assessed value is determined by your city’s assessment department or Manitoba assessment through a complex process up to 2 years before the date of assessment. Changes in the market, upgrades to your property which the assessor is not aware of, and many other factors can explain the differences between your assessed value and the market value of your home.