Whether you are buying, selling, financing or re-financing, there is a good chance your home will be subject to an appraisal to assess its value.
As an important aspect of almost all residential real estate transactions, CREB®Now spoke with Kira Penner (Canadian Residential Appraiser) to discuss the appraisal process and clarify some key points when contemplating the value of your home. Penner has been with Avison Young Valuation and Advisory Services (formerly Linnell Taylor Lipman and Associates) since 2005.
Residential dwellings are generally appraised using the direct comparison approach. This means that your home is compared with similar homes in your community and surrounding neighborhoods using current sales data. The appraised value reflects the age, condition and size of your home in relation to those properties that have recently sold in your area. If there has been a fair amount of sales activity, appraisers try to use data that is no older than 90 days. Similarly, your home’s value is in part based on being able to successfully market and obtain a sale in approximately a 90-day period.