Frequently asked questions

What is an appraisal, and how does it differ from a bank valuation or an agent’s estimate?

An appraisal is a written opinion of market value prepared by a qualified appraiser, supported by an inspection of the property, researched comparable sales, and documented analysis. It records the effective date of value, the scope of work, the evidence relied on, and the appraiser’s certification.

An automated bank valuation is generated by a statistical model from property records and sales data, without an inspection and without an appraiser’s analysis of the individual property. An agent’s estimate or comparative market analysis is prepared to inform a listing or offer strategy, and is not an appraisal. All three may produce different figures, and only the appraisal carries an appraiser’s certification and the professional obligations that attach to it.

How long does an appraisal take?

Turnaround averages 48 hours. Timing on an individual assignment depends on the assignment type, the report format, the effective date of value, and how quickly the inspection can be arranged with the owner or occupant. A delivery date is confirmed with the fee quote before the assignment begins.

What should be prepared before the inspection?

The appraiser needs access to the whole property, including the interior of all rooms, the basement, the garage, and any outbuildings. Documents that assist the analysis include a survey or site plan, a condominium status certificate where applicable, permits and invoices for renovations or additions, details of any rental or tenancy arrangements, and a current listing agreement or agreement of purchase and sale where one exists.

The property does not need to be staged or tidied, and its presentation does not affect the opinion of value. Access to every area does matter, as an area that cannot be inspected must be reported as such.

Can the appraiser reach a specific value if one is needed?

No. The opinion of value is reached independently from market evidence, and it cannot be pre-arranged, requested, negotiated, or directed by any party. Assignments are not accepted where the fee is contingent on reporting a predetermined value, a direction in value, the approval of a loan, or the outcome of a matter.

A client is welcome to provide information about the property, including recent improvements or a pending offer, and any relevant information is considered as part of the analysis. What the client cannot do is set the conclusion.

What is a retrospective appraisal?

A retrospective appraisal establishes the market value of a property as at an effective date in the past rather than the present. It is commonly required for estate and probate matters, for a date of separation, and for capital gains reporting where an adjusted cost base must be established.

The analysis relies on sales evidence and market conditions available as at that past effective date. Where the property has been altered since, the appraiser addresses its condition as at the effective date to the extent that can be supported by available evidence, which may include photographs, permits, and information from the owner or executor.

How is a relocation appraisal different from a standard appraisal?

A relocation appraisal forecasts the anticipated sale price of a property over a defined marketing period, rather than reporting a value as at a single date alone. It gives greater weight to current competing listings and to the property’s marketability, and it is prepared in the format required by the relocation management company or employer.

Relocation programmes commonly commission two independent appraisals of the same property, and where the conclusions differ beyond the programme’s tolerance, a reconciliation process follows in which each appraiser reviews the other’s data and reasoning.

Who receives the report?

The report is issued to the client, and to the intended users identified in the report. Intended users are established before the assignment begins, because they determine the scope of work and the reporting requirements.

A party who is not an identified intended user is not entitled to rely on the report. Where an additional party needs to rely on it, that should be raised at the outset so the assignment can be set up accordingly, rather than after the report has been delivered.

Is the report confidential?

Yes. Assignment results and confidential client information are held in confidence and released only to the client and the intended users identified in the report, or to parties the client authorizes in writing. Disclosure otherwise is limited to circumstances where it is required by law or by the appraiser’s professional obligations, including a regulatory or professional practice review.

A work file supporting each report is retained for the period required by professional standards.

Does an appraisal replace a home inspection?

No. An appraisal reports an opinion of market value and records the condition of the property as it bears on that value. It is not a home inspection: systems are not tested, finished areas are not opened, and the adequacy of structural, mechanical, electrical, and plumbing components is not reported on. A home inspection by a qualified home inspector serves that purpose, and the two are frequently commissioned together.

What happens if the appraised value comes in below the purchase price?

The report states the appraiser’s opinion of market value supported by the evidence analysed, whether or not that figure matches a contract price. Where a lender is the intended user, the lender decides how the value affects the financing.

If a client believes relevant information was not available to the appraiser, that information can be submitted for consideration, and the appraiser will review whether it changes the analysis. A conclusion is revised only where the evidence supports a revision.