PACIFIC RIM APPRAISALS LTD. – has completed over 1,000 depreciation and insurance reports on strata complexes for residential and commercial properties and over 100,000 market appraisals on properties such as single family, vacant land, development land, golf courses, motels, hotels, strata developments including commercial, multi-family, industrial, timeshare and fractional quarter shares interest appraisals etc. for over 40 years!
WHAT IS A MARKET VALUE APPRAISAL?
- An unbiased estimate of the market value of real estate
- An on-site inspection both interior and exterior must be completed by a qualified professional appraiser
- An appraisal report can use from 2 to 3 approaches to determine the value ie. A cost approach, a sales comparison and in the case of rental property, an income approach
- Cost Approach – uses information on local building costs, labor rates and other factors to determine how much it would costs to construct the property
- Sales Comparison – research recent sales activity within the subject’s vicinity and finds comparable properties and adjusts the comparables accordingly to sq. footage, features, land size etc.
- Income Approach – this third approach may be used when valuing the property, and the amount of income the property produces is used to arrive at the current value based on those revenues over the foreseeable future.
- Reconciliation – combining information from all approaches, the appraiser is then ready to stipulate an estimated market value for the subject property.
- During the Reconciliation period, there are always mitigating factors that may affect the overall sale price, ie. Seller’s motivation, bidding wars, etc, and all are taken into consideration of the comparables when arriving at a final market value amount.
- Bottom Line – an appraiser will help you get the most accurate market value based on fact and not opinion for your property, so you can make the most informed real estate decisions.
WHY USE PACIFIC RIM APPRAISALS FOR YOUR MARKET VALUE APPRAISALS?
- Pacific Rim Appraisals is a full service appraisal and consulting firm.
- 3 offices to better serve our clients – Nanaimo, Victoria and Richmond, B.C.
- Specializing in market appraisals and insurance appraisals on Vancouver Island including Victoria, Duncan, Ladysmith, Nanaimo, Parksville, Qualicum, Courtenay, Comox, Campbell River, Port Alberni, Ucluelet, Powell River, Tofino and the Gulf Islands
- Specializing in Depreciation and Reserve Fund Studies covering all of British Columbia
- Team of professional appraisers, certified reserve planners, engineers & admin staff
- All appraisers carry Errors and Omission Insurance
- Staff are members of the Appraisal Institute of Canada, The Real Estate Institute of Canada, the Appraisal Institute of Canada, Members of CHOA, VISOA, CCI & SPABC for stratas
- Approved by all major financial institutions and insurance companies
- We provide a professional, easy to read approx. 11 page residential appraisal report
- We provide a professional, easy to read commercial, industrial and multi-family narrative appraisals
- Highest ethical standards and performance
- Competitive pricing
- Guarantee a 24 hour turnaround from the time of inspection on standard residential and 7 day turnaround on standard commercial appraisals marked RUSH!
- Emphasis and expertise in current, prospective and retrospective market value appraisals
- Completion of market value appraisals for:
- Purchase & Sale
- Estate & Matrimonial Settlement
- Expropriation & Acquisition
- Mortgage & Lending
- Fire Insurance Claims
- Replacement Cost Estimates for Insurance Placement
- Estate Planning & Valuation Day
- Rental and Lease Surveys
- Construction Progress Advances
- Industrial, Commercial, Investment Properties
- Land Development
- Residential & Recreational Properties
- Rural Properties
- Special Use Properties
- Data base of over 100,000 appraisal files
HOW TO PREPARE FOR AN APPRAISAL
For homeowners, a real estate appraisal is the linchpin to buying or selling their home. It allows the property transactions to occur among the buyer, seller, real estate agent and mortgage lender.
Before an Appraiser arrives, there are a few things you should know. An appraiser must be certified to perform appraisals prepared for real estate related transaction. The appraiser will have a CRA (certified residential appraiser), AACI (accredited appraiser Canadian Institute) or RIBC (real estate institute of & 550-2950 Douglas St., Victoria, British Columbia)
To facilitate the appraisal process, it’s beneficial to have these documents ready for the appraiser:
- A plot plan or survey of the house and land (if readily available)
- Information on the latest purchase of the property in the last three years
- Written property agreements, such as a maintenance agreement for a shared driveway
- List of personal property to be sold with the home
- Land Title Document that describes encroachments or easements
- Most recent BC Assessment Notice and or legal description of the property
- Home inspection reports, or other recent reports for termites, EIFS (synthetic stucco) wall systems, septic systems and wells
- Brag sheet that lists major home improvements and upgrades, the date of their installation and their cost (for example, the addition of central air conditioning or roof repairs) and permit confirmation (if available)
- A copy of the current listing agreement and broker’s data sheet and Purchase Agreement if a sale is “pending”.
- Information on “Homeowners Associations” or condominium covenants and fees.
- A list of “Proposed” improvements if the property is to be appraised “As Complete”.
Once your appraiser has arrived, you do not need to accompany him or her along on the entire site inspection, but you should be available to answer questions about your property and be willing to point out any home improvements.
Here are some other suggestions:
- Accessibility: Make sure that all areas of the home are accessible, especially to the attic and crawl space
- Housekeeping: Appraisers see hundreds of homes a year and will look past most clutter, but they’re human beings too! A good impression can translate into a higher home value
- Maintenance: Repair minor things like leaky faucets, missing door handles and trim
WHY GET AN APPRAISAL
When do you need an Appraisal
Every year, countless people in Canada buy, sell or refinance their homes or real estate holdings. Most, if not all, of these transactions include a simple line item for an appraisal. It has become an understood and accepted part of a real estate transaction. ”Let’s bring in the expert and make sure we’re not spending too much on this property.”
But is this the only reason to get an appraisal? Are there other times when the services of a certified, licensed, independent real estate professional might come in handy?
Property Tax Challenges
It’s a running joke that everyone has a different perspective of what a house is worth. And it’s the tax assessor that seems to always come in at the high end of the scale! Challenging the tax assessment has become an annual ritual in many parts of the country. Unfortunately, most people go into these challenges unarmed. They may pull some information from the internet to support their claims, but have no real basis other than: ”It wasn’t worth that much last year.”
A real estate appraiser can help in these situations. While it may not be economical to commission a full appraisal to lop a few hundred off your tax bill, often an appraiser can do a limited appraisal or neighborhood analysis for much less. These documents can carry a lot of weight when you appear before a court of revision and/or appeals board.
Before someone decides to sell a home, there are several decisions to be made. First and foremost: ”How much should it sell for?” But first there may be other equally important questions to ask: ”Would it be better to paint the entire house first?” ”Should I put in that third bathroom?” ”Should I complete my kitchen remodel?” Many things which we do to our houses have an effect on their value. Unfortunately, not all of them have an equal effect. While a kitchen remodel may improve the appeal of a home, it may not add nearly enough to the value to justify the expense.
Appraisers can step in and help make these decisions. Unlike a Realtor, an appraiser has no vested interest in what amount the house sells for. His fee is based on his efforts, not a percentage of the sales price. So seeking a professional appraisal can often help homeowners make the best decisions on investing in their homes and setting a fair sales price.
Estate Planning, Liquidation or Divorce
The loss of a loved one is a difficult time in life. Likewise, a divorce can be a particularly traumatic experience. Sadly, these events are often complicated by difficult decisions regarding the disposition of an estate. Unlike many wealthy individuals, the majority of Canadians do not have dedicated estate planners or executors to handle these issues. Also, in most cases, a home or other real property makes up a disproportionate share of the total estate value.
Here too, an appraiser can help. Often the first step in fairly disposing of an estate is to understand its true value. Where property is involved, the appraiser can help determine the true value. At this point, equitable arrangements can more easily be arrived at among disputing parties. Everyone walks away knowing they’ve received a fair deal.
There are other uses for real estate appraisals. The highly-trained individuals behind these services are always looking for ways to put their expertise to work for home owners and the people who support them