Knowing the market value of a property is often essential whether you’re buying, selling, or refinancing. To get an accurate price, it’s crucial to have your home appraised by a certified professional.
While there is a cost associated with an appraisal, typically a few hundred dollars, depending on the type of property, it’s a small price to pay when you consider that a home is most likely your most significant investment.
Curious about the cost of real estate appraisal services? Keep reading for more details.
What is the role of a certified appraiser?
A certified appraiser is a professional expert in real estate valuation, responsible for determining the market value of a property. There are many situations where you might need an appraiser, such as:
- Selling or buying a home.
- Mortgage refinancing.
- Divorce settlements.
- Capital gains calculations.
- And more.
Depending on the situation, the appraiser may be hired by an individual, a financial situation, a municipality, or even a court. Indeed, their authority as an appraiser is recognized by banks and the judicial system.
The Ordre des évaluateurs agréés du Québec (OEAQ)
The Ordre des évaluateurs agréés du Québec (OEAQ) is the regulatory body for the appraisal profession in the province. The OEAQ oversees the exclusive practice of property appraisal to protect the public and ensure the quality of professional services provided by its members.
In addition to regulating the profession, the OEAQ enforces a strict code of ethics and standards of practice, ensuring that certified appraisers adhere to the highest levels of professionalism and integrity in their work.
What are the appraisal methods?
The appraiser's role is to create a comprehensive evaluation of the property being assessed. Depending on the type of property, the certified appraiser will choose the most appropriate techniques to ensure the most accurate and fair valuation.
In Quebec, the most widely used is the comparison method, also known as the sale comparison approach. This method estimates the market value of a property by comparing it to similar properties being sold in the area, often referred to as comparables. Key factors like surface area, number of rooms and floors, and year of construction are taken into account to establish a fair market value.
In addition to the comparative method, there are also the cost method and the income method, which are typically used to value commercial, industrial, or special-purpose properties.
Property appraisal: how does it work?
To appraise a property, the appraiser begins by inspecting its physical condition. This includes assessing any needed repairs or renovations, as these can affect the property’s market value.
The physical evaluation also takes into account factors such as:
- The number of rooms.
- The presence of a garage.
- The presence of a swimming pool.
- The size of the living area.
- The type of exterior siding.
Once the property inspection is complete, the appraiser may also use the comparison method to research prices of similar homes for sale in the neighbourhood or municipality.
After completing the appraisal, the appraiser prepares a detailed report for the client. This report includes the information about the property, the purpose of the appraisal, and the date it was conducted.
This report can be useful if you’re selling your home and want to ensure you’re asking a fair price, or if you’re buying a home and want to confirm you’re paying a reasonable price. In both cases, the appraiser’s report helps verify that the price aligns with the current real estate market.
How much does it cost to hire a certified appraiser?
The cost of hiring a certified appraiser can vary because there are no fixed rates set by the Ordre des évaluateurs agréés du Québec (OEAQ). Several factors influence the price of a real estate appraisal, including:
- The type of property being appraised.
- The location of the property.
- The appraiser’s level of experience.
- The purpose of the appraisal.
It’s important to note that certified appraisers do not receive a commission for their work. Their fee is independent of the property’s market value, meaning they have no incentive to overestimate or underestimate the value.
For a standard single-family home, the average cost of an appraisal is typically around $650, although this price can vary depending on the factors mentioned above.
Here are the approximative rates for different types of properties:
- $500 to $900 for a house.
- $400 to $750 for a condo.
- Over $1,000 for a multi-unit property.
To get a better idea of the specific rates for your property, it’s a good idea to reach out to several certified appraisers in your area to compare their prices and services.
If you’d like help finding appraisers, feel free to contact us. Our team can connect you with 3 prequalified appraisers, allowing you to compare quotes and choose the one that best suits your needs.
Who pays the certified appraiser?
Typically, if you hire a certified appraiser to determine the value of your property, you are responsible for covering the costs. However, you may be surprised to learn that even if your bank requests the appraisal, such as for a mortgage loan or refinancing, you will still be the one to pay the appraisal fee.
In most cases, even though the financial institution requests the appraisal, the homeowner is responsible for the associated costs.
Why use the services of a certified appraiser to determine the value of your house?
When determining the market value of a home, it might be tempting to rely on the municipal assessment, but it can be risky. Municipal appraisals are typically not very accurate and should not be used to establish a property’s sale or purchase price.
Municipal assessments are conducted every 3 years by the municipality, mainly to calculate property taxes. However, there is often an 18 months’ delay between when the value is determined and when the new property roll takes effect. Moreover, these assessments do not reflect the current real estate market condition, so they do not provide an accurate representation of a property’s market value. That is why it is best to call on the services of a real estate appraisal professional.
How do I choose a good certified appraiser?
With so many qualified appraisers in the province, it can be challenging to choose the right one for your needs. To find a good certified appraiser, make sure to:
- Compare quotes from several appraisers to understand pricing and services.
- Verify their qualifications to ensure they meet the professional standards required for the job.
- Check their training to confirm they have the necessary expertise in real estate appraisal.
- Ensure they are a member of the Ordre des évaluateurs agréés du Québec (OEAQ) which guarantees they adhere to industry standards and ethics.
- Confirm they carry civil liability insurance to protect you in case of errors or omissions.
Looking for an expert to help you determine the value of your property?
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