The value of a piece of property is always controversial. The seller – and their realtor – wants to obtain the highest possible price, whereas the purchaser wants a bargain. A professional appraiser can strike a balance with an independent valuation. However, it’s still a fact ‘the person who pays the piper calls the tune’.
That phrase harks back to days before digital music. In fact, any form of recorded music of any kind. If you were planning a party you hired a musician, or a group of musicians to provide the entertainment. Any guest could ask for their favorite song. However the host had the overriding vote because they ‘paid the piper’.
If You Are the Purchaser You Need an Independent Opinion
There is nothing preventing you asking your best friend what they think a property is worth. However, it might we wiser to ask an Appraisal Institute of Canada (AIC) member for their opinion. That’s because their members should hold qualifications and reputations to match.
When a realtor mentions a price, ask whether it is a professional assessment by an appraiser. If not, ask how did you arrive at that value? After all it’s your money and you are entitled to a fair deal in exchange.
Fair Enough, So What Do Appraisers Actually Do?
The word ‘appraise’ means assessing the value (or quality) or something. Hence the accuracy of the appraisal depends on the thoroughness, and the integrity of the appraiser.
Appraisers value anything from antique hat pins to ocean liners. However, you are most likely to encounter them valuing real estate. In this instance, they charge a professional fee in exchange for evaluating comparable properties.
A real estate evaluator with AIC membership should therefore consider the following factors while forming an independent opinion.
# Is the subject property in average condition by local standards?
# If not, what might it cost to bring it back up to a similar condition?
# How do similar properties compare that sold in the past year?
# Which aspects apply and which may be ignored as irrelevant?
An appraiser uses comparable selling prices, to estimate the value of a subject property after factoring in and out these differences. Stonegate Incorporated has a unique marketing strategy pitched to help you secure a fair price.
Speak to us soon if you are in a mood for buying or selling. Call (587) 500-0417 now, prepare to be pleasantly surprised.