Logo letter

Learn the Different Approaches used in Residential Property Appraisal


Usually, the biggest single investment many people can will probably make in life is purchasing a property. Whether it is a residential home or a vacation home, purchasing a real property is often a major financial transaction and multiple parties are usually involved.   Among the involved parties are the mortgage companies, realtors and appraisers.


On the other hand, you need to ensure that the amount you pay on a property reflects its actual value.  Therefore, you must ensure that you get trusted residential appraisal services in Edmonton from http://landucation.com/residential-real-estate-appraisals-edmonton/.   An appraisal simply determines the amount a seller would expect from the sale of a property or what the buyer is expected to pay.  Through a trusted appraisal service, you can get the accurate estimates of a residential property value.




An inspection is usually the starting point of an appraisal at http://landucation.com/land-appraisal-edmonton/.   Usually, the appraiser reviews the appraised property to confirm its actual status.  There are various features that an appraiser must see that may include number of rooms, as well as the location of the property.  The appraiser ensures that such feature actually exist and they are in a condition that a reasonable buyer expects them.


Usually, an inspection will include a property sketch, ascertaining proper square footage, as well as the property layout.   Again, an appraiser will look for obvious features and defects that may have an effect on property value.


A trusted residential appraisal services in Edmonton uses several approaches to get the value of the residential property.  The following are some of the approaches.


  1. An approach based on cost.


This approach is usually the easiest.  The appraiser uses certain information like labor and local building costs as well as other factors to calculate the cost of building a similar property.  In this approach, mitigating factors like the amenities and location are usually not reflected in this approach. 

  1. Comparison of the sales.


Usually, appraisers commonly use sales comparison approach to determine the value of properties.  The appraiser need to know the neighborhood.   Therefore, they understand the value of different features to the residents. For instance, they get know the school zones, traffic patterns, and busy throughways.   The information is then used to determine how they affect the property value.


Also, the appraiser finds comparable properties and recent sales. The appraiser will then get information on other items of the comparable property such as square footage, type of floor, number of rooms among others and are adjusted accordingly. 


It is usually important to perform an appraisal during the sale or purchase of a property. However, you must seek for trusted residential appraisal services in Edmonton.