Have a question? Call us 613-701-6253 Get a Quote Book Appraisal



What is an Appraisal?

An Appraisal is a thought process leading to an opinion of Value which is arrived at through a formal process that typically uses the three ”common Approaches to Value”; the Cost Approach which is what it would cost to replace the improvements, less physical deterioration and other factors, plus the Land Value; the Direct Comparison Approach which involves making a comparison to other similar properties which have recently sold and is normally considered the most accurate indicator of Value; and the Income Approach, which typically utilized when appraising income producing properties (i.e. rental properties) and estimating what an investor would pay based on the income produced by the property.

What does an Appraiser do?

An Appraiser provides a professional, unbiased opinion of Market Value of a property and presents their formal analysis in a comprehensive report.

Why would a person need a Home Appraisal?

Although there are many reasons for getting a Home Appraisal, the most common reasons are Real Estate and mortgage transactions. Some other reasons include:

  • To obtain a loan.
  • To establish the replacement cost of insurance.
  • To contest high property taxes or for Revenue Canada(GST).
  • To settle an estate.
  • To establish a purchase or selling price.
  • For matrimonial (prenuptial/divorce settlement) purposes.
  • For employee relocation purposes

What is the difference between an Appraisal and a Home Inspection?

The Home Inspector is to provide an evaluation/report which will include an evaluation of the condition of the home’s heating system, central air system, interior plumbing, electrical systems, roof, attic, visible insulation, walls, ceilings, floors, windows, doors, foundation, structure, etc. An Appraiserયb is to establish an estimated Market Value of the subject property based on current market conditions. 

What does the Appraisal Report contain?

Each Appraisal Report must reflect a credible estimate of Market Value and will include, at the minimum, the following:

  • The client and other intended users
  • The intended use of the report
  • The purpose of the assignment
  • The type of Value reported and the definition of the Value reported
  • The effective date of the Appraiser’s opinions and conclusions
  • Relevant property characteristics such as location attributes, physical attributes, legal attributes, economic attributes, the real property interest valued
  • All known easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature.
  • Division of interest, such as fractional interest, physical segment and partial holding
  • The scope of work used to complete the assignment
  • Photos of the property, the comparable sales, location maps, sketch of the property

After completing the report, what assurance is there that the value indicated is valid?

In communicating an appraisal report, each Appraiser must ensure the following:

  • That the information analysis utilized in the Appraisal Report was appropriate
  • That significant errors of omission or commission were not committed individually or collectively
  • That services were not rendered in a careless or negligent manner
  • That a credible, supportable Appraisal Report was communicated

To become a designated Appraiser with The Appraisal Institute of Canada, Appraisers must fulfill rigorous education and experience requirements (see Become a CRA or AACI at www.aicanada.ca) and all active members of the Appraisal Institute of Canada must take continuing education courses in order to remain a member. In addition, Appraisers must abide by a strict industry code of ethics and comply with national standards of practice for Real Estate Appraisal – the rules for developing an Appraisal and reporting its results are insured by enforcement of the Canadian Uniform Standards of Professional Appraisal Practice.

Who do Appraisers work for?

Appraisers are typically employed by lenders to estimate the Value of property involved in a loan transaction (i.e. mortgage), however Appraisers also provide opinions in litigation cases, tax matters and investment decisions. 

Where does an Appraiser get the information used to estimate value?

Gathering data is one of the primary roles of an Appraiser with data divided into two categories, Specific and General. Specific Data is gathered from the home itself, i.e. location, condition, amenities, size, etc., and General Data is gathered from a number of sources such as Multiple Listing Services (MLS) for data on recently sold homes that might be used as comparables, tax records (MPAC), and other public documents which are used to verify actual sales prices in a market. But, most importantly, the Appraiser gathers General Data from his or her past experience in conducting Appraisals for other properties in the same market. 

Why do I need a professional appraisal?

Anytime the Value of your home or other real property is being used to make a significant financial decision, an Appraisal helps – if you’re selling your home, an Appraisal helps you set the most appropriate Value; if you’re buying a home it makes sure you don’t overpay; if you’re engaged in an estate settlement or divorce it ensures that property is divided fairly. Often, your home is the single, largest financial asset you will ever own and knowing its true Value means you can make the right financial decisions. 

How do I get ready for the Appraiser?

The first step in most Appraisals is scheduling a time for the Appraiser visit the home during which time the Appraiser will measure it, determine the layout of the rooms inside, confirm all aspects of the home’s general condition, and take several photos of your house for inclusion in the report. The best thing you can do to help is make sure the Appraiser has easy access to all areas of your home, i.e. the exterior (trim any bushes and move any items that would make it difficult to measure the structure) and the interior (make sure the Appraiser can easily access items like furnaces and water heaters). The following items, if available, will help your Appraiser to provide a more accurate Appraisal in a shorter period of time:

  • A survey of the house and property
  • A recent tax bill (i.e. MPAC Assessment)
  • A list of personal property to be sold with the house (if applicable)
  • A copy of the original plans
  • List of any improvements you have completed to the home (i.e. updated kitchen, new furnace, etc.)
  • List outlining any rents, utility expenses, etc. (rental property only)

What is ”Market Value?”

Market Value1 is 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 seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress.ï°¾

One definition of Market Value1 is:

most probable price which a property should bring in a competitive and open Market as of the specified date under conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeable and assuming the price is not affected by undue stimulus.ï°¾

This definition may be expanded by adding: Implicit in this definition is the consummation of a Sale as of the specified date and passing of title from seller to buyer under conditions whereby:

  • buyer and seller are typically motivated
  • both parties are well informed or well advised and acting in what they consider their best interests
  • a reasonable time is allowed for exposure in the open Market
  • payment is made in terms of cash in Canadian dollars or in terms of financial arrangements comparable thereto
  • the price represents the normal consideration for the property sold unaffected by special or creative financing or sale concessions granted by anyone associated with the sale


1Lines 12.16.1 to 12.16.3 of Canadian Uniform Standards Professional Practice, January 1, 2012

Which home renovations add the most to the Value?

The answer to this is different depending upon the location of the home as different markets Value amenities differently. For example, adding a central air unit in Toronto ON may add significant Value, while adding one in a home located in Nunavik NWT would not have much impact. As a general rule, the most Value returned from renovating a home comes from painting and decorating, and according to a survey conducted by the Appraisal Institute of Canada in, painting and decorating returned an average of 73% of the investment – in other words, a $3,000 painting and decorating project would add approximately $2,190 to the Value of the home. Kitchen renovations were second, returning 72%, and bathroom renovations were third with a 68% return.

Wieland & Associates - Ottawa Appraisals - Ottawa Appraisers

Wieland & Associates – Ottawa Appraisals – Ottawa Appraisers