Question 1

What is a real estate appraisal?

Accepted Answer

A real estate appraisal is an independent and unbiased opinion of market value prepared by a qualified appraiser. Appraisals are commonly used for financing, legal matters, estate planning, property transactions, insurance purposes, development analysis, and internal decision-making.

All assignments are completed in accordance with the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP).

Question 2

What is market value?

Accepted Answer

Market value is defined by (CUSPAP) as:
 
“The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and the seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress”
 
Market value assumes both buyer and seller are informed, motivated, and acting prudently.

Question 3

How is market value determined?

Accepted Answer

Market value is typically developed through one or more of the following appraisal approaches, depending on the property type and available market data:

Direct Comparison Approach

This approach compares the subject property to similar properties that have recently sold in the marketplace. Adjustments may be made for differences such as location, size, age, condition, utility, zoning, and site characteristics. This is commonly the primary approach for residential and development land appraisals.

Income Approach

This approach analyzes the income-producing capability of a property. Market rents, vacancy allowances, operating expenses, and capitalization rates are reviewed to estimate value. This approach is commonly applied to apartment buildings, commercial, industrial, and other income-producing properties.

Cost Approach

This approach estimates the current cost to replace or reproduce the improvements, less depreciation, plus land value. The Cost Approach is most applicable for newer buildings, special-use properties, and insurance replacement cost assignments.

The relevance and weighting of each approach depends on the nature of the property, market conditions, and the availability of reliable data.

Question 4

How long does an appraisal take?

Accepted Answer

Turnaround times vary depending on:

property type,
assignment complexity,
data availability,
and inspection requirements.

Typical residential assignments are often completed within 1-2 business days, while commercial, industrial, agricultural, or development assignments may require approximately 1–2 weeks.

Question 5

What information should I provide before the appraisal?

Accepted Answer

Helpful information may include:

legal descriptions or title documents,
rent rolls and leases,
operating statements,
surveys or site plans,
development plans,
environmental reports,
construction details,
and recent property improvements.

Additional information may be requested depending on the assignment type.

Question 6

Are appraisals different from BC Assessment values?

Accepted Answer

Yes. BC Assessment values are mass appraisal estimates prepared for taxation purposes using a province-wide assessment process.

A fee appraisal is a property-specific analysis prepared for a particular purpose and effective date using detailed market research, inspection, and valuation analysis.

Question 7

Do you appraise commercial and industrial properties?

Accepted Answer

Yes. Assignments include:

office buildings,
retail properties,
shopping centres,
industrial buildings,
warehouses,
strata industrial units,
mixed-use developments,
hospitality properties,
and special-use real estate.

Question 8

Do you appraise development land?

Accepted Answer

Yes. Development land assignments may include:

subdivision land,
multi-family development sites,
mixed-use development land,
highway commercial land,
industrial development land,
and redevelopment properties.

Assignments may also involve:

proposed subdivisions,
rezoning scenarios,
hypothetical conditions,
residual land analyses,
and land exchange assignments.

Question 9

Can an appraisal be completed subject to proposed development or rezoning?

Accepted Answer

Yes. Certain assignments may be completed subject to:

proposed rezoning,
subdivision approval,
development permits,
building completion,
or other Hypothetical Conditions and Extraordinary Assumptions.

These assumptions are clearly disclosed within the appraisal report in accordance with CUSPAP requirements.

Question 10

Do you provide rent studies and income analysis?

Accepted Answer

Yes. Depending on the assignment, reports may include:

market rent analysis,
stabilized income analysis,
capitalization rate analysis,
discounted cash flow analysis,
and feasibility-related valuation support.

Question 11

Do you appraise apartment and multi-family properties?

Accepted Answer

Yes. The firm regularly appraises:

apartment buildings,
townhouse developments,
mixed-use residential projects,
purpose-built rental housing,
and affordable housing developments.

Assignments range from smaller rental properties to large multi-building developments.

Question 12

Do you complete appraisals for CMHC or lender financing?

Accepted Answer

Yes. Reports are regularly prepared for:

financial institutions,
credit unions,
CMHC-related financing,
private lenders,
municipalities,
and government agencies.

Question 13

Do you appraise farms and rural acreage properties?

Accepted Answer

Yes. Rural and agricultural assignments may include:

farmland,
ranches,
hobby farms,
agricultural improvements,
irrigation systems,
rural residential acreage,
and resource-based properties.

Northern and Central British Columbia often involve unique rural valuation considerations, including limited sales data, servicing constraints, agricultural capability, and resource influences.

Question 14

What is a replacement cost appraisal?

Accepted Answer

A replacement cost appraisal estimates the cost to replace existing improvements with new improvements of similar utility at current construction costs.

These assignments are commonly prepared for insurance purposes and differ from market value appraisals.

Question 15

Is replacement cost the same as market value?

Accepted Answer

No.

Replacement cost estimates the cost to reconstruct improvements, while market value reflects what a property would most likely sell for in the open market.

The two values can differ significantly depending on:

depreciation,
location,
land value,
market conditions,
and property utility.

Question 16

Do you complete retrospective appraisals?

Accepted Answer

Yes. Retrospective appraisals estimate value as of a historical effective date and are commonly required for:

estate purposes,
litigation,
accounting,
taxation matters,
and matrimonial proceedings.

Question 17

Can your reports be used for legal or court-related matters?

Accepted Answer

Yes. Appraisals may be prepared for:

legal proceedings,
expropriation,
estate disputes,
partnership matters,
and litigation support.

Additional fees may apply for court attendance or expert witness testimony.

Question 18

What areas do you serve?

Accepted Answer

The firm primarily serves Prince George and Northern British Columbia, including surrounding communities throughout Central and Northern BC.

Assignments in remote or rural areas may require additional travel time and disbursements depending on location and property complexity.