The purpose of an appraisal is usually to establish the fair market value of a property at a given point in time. It is an independent and objective opinion which is universally accepted when properly prepared by credible professionals. Appraisals host a number of different applications.
Purchase and Sale
When either buying or selling real property, it is advisable to have an appraisal done on the property. This will establish the value and/or the value potential of the property. This process helps to ensure that the property being traded is being done so, at a reasonable fair market value. An appraisal can enhance your knowledge and understanding of the current buying or selling market, by providing comparables that have either recently sold or which are presently available for sale.
When applying for a mortgage or refinancing, an appraisal is invaluable, as all financial institutions, mortgage brokerages and mortgage lenders have criteria that must be met, regardless of the type or size of the property. The assessment provides lenders with an analysis of a property and gives an assurance that there is little or no chance that there will be any loss.
Appraisals are used to establish fair market value for the purpose of taxation including property and income tax matters, such as capitol gains. Appraisals meet the needs for dealing with the Canada Revenue Agency, provincial agencies and the courts.
Property appraisals are useful for various kinds of litigation pertaining to assessment, family law, hazardous conditions, environmental contamination, division of assets, bankruptcy, shareholder interests and much more. A professional appraiser can prove to be a valuable witness in court required in that regard.
An appraisal of any property within an estate is important for a number of reasons. It can provide an accurate valuation for tax purposes, property distribution and estate planning and can assist in settling disputes. It can give an executor of an estate, some solid facts pertaining to the value for real property left in a will and which is commonly accepted by various levels of government.
Real Estate is a popular investment to build personal and corporate wealth. An appraisal of the real estate, assists individuals and investors in making informed decisions on the management of their portfolio. When assets have to be divided up between business partners or members of the family an appraisal will help establish fair market value for a property and helps form an equitable division of those assessed value.