Frequently Asked Questions

What is a home appraisal?

A house appraisal, also known as a residential appraisal, is a formal opinion of the value of a property. It is conducted by a certified residential appraiser who evaluates the property’s condition, location, features, and comparable sales in the area. This information is provided to the client as a written report.

Why would I need a home appraisal?

Home appraisals are necessary for various reasons, which may include buying or selling a home, refinancing a mortgage, settling an estate, appealing an assessment or expropriation, or handling legal matters like divorce settlements.

Why do I need an appraiser?

A certified residential appraiser provides an objective, expert evaluation of your property’s value. Their report is essential for lenders, buyers, sellers, or legal entities requiring an accurate assessment of your house’s worth. 

How do I know if an appraiser is certified?

A certified residential appraiser is a member of a recognized governing body, such as the Appraisal Institute of Canada (AIC), and holds one of its two designations: Accredited Appraiser Canadian Institute (AACI) or Canadian Residential Appraiser (CRA).

At Southwest Appraisal, our team is CRA-designated, a proud member of the AIC in good standing, and backed by professional liability insurance. This ensures we meet the highest standards of education, ethics, and professionalism, giving you confidence in the quality and reliability of our residential appraisal services.

How do I get a home appraisal?

To get a house appraisal, contact a certified residential appraiser directly or work with your lender, who will typically arrange the appraisal as part of the home financing process. Ensure the appraiser is designated and experienced within your area and property type.

How long is an appraisal valid (how long does a home appraisal last)?

A residential appraisal provides an opinion of a property's value as of a specific date. However, this value can quickly become outdated due to changing market conditions. In most cases, lenders require appraisals to be completed within the last 90 to 180 days. If you need to reference an appraised value after its effective date, it’s important for authorized users and clients to consult with the appraiser who authored the report to ensure the information is still relevant and accurate.

How much does a home appraisal cost?

The cost of a house appraisal depends on factors such as the property's type, size, location, and complexity. Because every appraisal is unique, we provide customized quotes based on the specific details of your request. Contact us to discuss your needs and receive a personalized quote.

How is an appraisal different from a home inspection?

A home appraisal estimates the value of a property and takes its condition into consideration, while a home inspection assesses the physical condition of the home, identifying potential issues such as structural damage or system failures. A home inspection typically has a more thorough physical inspection of a residence. Both are important but serve different purposes.

How is a home’s value determined?

A home appraisal determines the property’s value by examining its size, condition, age, location, upgrades, and features. There are a variety of positive and negative influences that may affect value. The appraiser also compares recent sales of similar properties in the area relative to the property being appraised to ensure accuracy.

What should I do to prepare for an appraisal?

To prepare for a home appraisal, ensure your home is clean and accessible. Provide documentation of any recent upgrades or renovations and address any minor repairs.

Who pays for the appraisal?

Usually, the person or entity requesting the residential appraisal (e.g., the buyer, seller, or lender) is responsible for the cost. In some cases, a mortgage broker may request an appraisal on behalf of a lender – however, the borrower would be responsible for payment.

Can the appraised value be different from the sale price?

Yes. The house appraisal is an objective estimate of the market value, which may differ from the agreed-upon sale price depending on market conditions or other factors.

Are appraisals required for refinancing a mortgage?

Yes, lenders often require a residential appraisal to ensure the home’s value aligns with the loan amount. Some of these appraisals are completed by automated software, while others are completed by a certified residential appraiser and would require an inspection of the property.

Can I use an appraisal for more than one purpose?

In most cases, a residential appraisal is tailored for a specific purpose (e.g., mortgage financing, estate settlement, separation). While it may provide insight for other uses, a new appraisal may be required for different transactions.

What is included in the appraisal report?

An appraisal report typically includes:

• A detailed description of the property and its condition.

• Information regarding the physical site, neighbourhood, location, and market factors.

• Photos of the interior and exterior.

• Information on comparable sales.

• Market trends affecting the property.

• The appraiser’s final opinion of value.

What happens if the appraisal comes in lower than expected?

If the home appraisal is lower than anticipated, it may affect financing. Options may include renegotiating the purchase price, increasing your downpayment, or appealing the appraisal with additional supporting data.

Do I need to be present during the appraisal?

An adult—such as a lender, broker, lawyer, realtor, or homeowner—must be present during the house appraisal unless the home is vacant. While it’s not required for the homeowner to be present, attending can be helpful. It gives you the opportunity to provide valuable information to the appraiser, such as details about recent upgrades, renovations, or unique features of the property.

How do appraisers select comparable sales?

Residential appraisers select comparable properties based on location, size, condition, and features. Ideally, the comparable sales occurred within the last 90 days and are as similar as possible to the subject property.

Can I challenge an appraisal?

Yes, you can challenge a residential appraisal if you believe there was an error or important information was overlooked. However, the process depends on who initiated the appraisal:

• If the lender is the client: You will need to contact your lender directly to request a review or revision. The lender will then communicate with the appraiser. To support your request, you should provide additional data, such as recent comparable sales or documentation of property upgrades.

• If the homeowner is the client: We can work directly with you to review the appraisal. You should supply relevant information, such as recent sales or documentation of upgrades, to support your request.

In all cases, we are happy to clarify our findings, justify the comparable sales used, and explain the overall value conclusion. 

How can I improve my home’s appraised value?

To improve your home appraisal value:  

• Complete minor repairs and maintenance as needed.  

• Enhance curb appeal with landscaping or exterior updates.  

• Paint where necessary to refresh the interior or exterior.  

• Declutter and thoroughly clean your home.  

• Document recent upgrades or renovations to provide to the appraiser.  

Additionally, Southwest Appraisal can provide a house appraisal based on proposed renovations that have not yet been completed. This helps you determine whether the planned improvements are likely to yield a desirable return on investment. Consulting with our team can guide you in prioritizing renovations that will have the most significant impact on your home’s value.

What hurts a home appraisal?

Several factors can negatively affect a home appraisal, including:

• Poor property condition or visible damage.

• Lack of maintenance or deferred repairs. Deferred maintenance should be addressed.

• Outdated features or systems.

• Unfavourable location factors, such as proximity to high-traffic roads or industrial areas.

• Underpriced comparable sales in the area.