Frequently Asked Questions
Common questions about how a valuation is prepared, what the report contains, and how the process works. If yours isn't answered here, ask directly.
What is a property appraisal?
An appraisal is an independent, professional opinion of a property's market value as of a specific date, prepared by a qualified appraiser and supported by documented market evidence. In Canada it is prepared to CUSPAP, the national standard for professional appraisal practice.
How is an appraisal different from my BC Assessment?
BC Assessment is a mass appraisal prepared by the province for taxation, reflecting value as of July 1 of the previous year and usually without an interior inspection. An appraisal is an individual valuation as of a current or specific date, based on a full review of your property and recent comparable sales. The two figures often differ, sometimes significantly.
How is an appraisal different from a realtor's market evaluation or CMA?
A comparative market analysis is a pricing opinion prepared by a real estate agent to help list or sell a home. An appraisal is an independent valuation prepared by a designated appraiser to CUSPAP, intended to be relied upon by lenders, courts, and the CRA. Where a value must be defended, the appraisal is the document that carries weight.
What does CUSPAP mean, and why does it matter?
CUSPAP is the Canadian Uniform Standards of Professional Appraisal Practice, the mandatory standard every designated appraiser in Canada must follow. It governs how value is researched, analyzed, documented, and reported, and it is why a CUSPAP compliant report is accepted in negotiation, in court, and before the CRA.
What is P.App CRA designation?
P.App CRA designation is national designation granted by the Appraisal Institute of Canada. They signify the education, experience, and ethical standards required to provide professional residential valuations.
What happens during the appraisal process?
It begins with a conversation about the property and the purpose of the valuation. The appraiser inspects the property, researches comparable sales and market conditions, analyzes the evidence, and prepares a written report stating the opinion of value and the reasoning behind it.
Can an appraisal be prepared for a date in the past?
Yes. A retrospective appraisal establishes value as of a specific historical date using the market evidence as it stood at that time. These are common for estates, capital gains, and matters where a value was never documented when it should have been.
How long is an appraisal valid?
An appraisal states value as of its effective date and reflects the market at that time. As markets move, particularly in Metro Vancouver and the Fraser Valley, an older report may no longer represent current value, and lenders and courts generally expect a recent appraisal.
Why does a complex or unique home take longer to appraise?
A distinctive home has few true comparables, so the right evidence has to be researched and analyzed rather than pulled from a list. That care is the point: above roughly two million dollars a valuation may rest on only three to five genuine comparables, where judgment matters far more than a formula.
When does the CRA require an appraisal?
The CRA may require a supportable fair market value when property is sold, gifted, transferred between family members, inherited, or changed from one use to another. In each case the value must be documented to withstand review. Confirm your filing requirements with your accountant.
How does the CRA define fair market value?
The CRA defines fair market value as the highest price a property would bring in an open and unrestricted market between informed, willing parties acting at arm's length and under no compulsion to buy or sell. A defensible appraisal is prepared to meet that standard.
What is a change of use, and why does it need an appraisal?
When you change a property from a principal residence to a rental, or a rental to a principal residence, the CRA treats it as a deemed disposition at fair market value. An appraisal as of the change of use date establishes that value, which sets the cost base for any future gain. Elections under section 45(2) or 45(3) may apply; your accountant determines the tax treatment.
Can I use my realtor's opinion or an online estimate for the CRA?
Generally no. These are not prepared to CUSPAP and carry little weight with the CRA on review. A valuation prepared by a designated appraiser is the document intended to support a tax filing.
I changed the use of my property years ago and never had it valued. Can that still be done?
Yes. A retrospective appraisal can establish fair market value as of that past date using archived market evidence. There is no fixed limit on how far back this can go; valuations dating back decades are routine, including the December 31, 1971 date for property held before capital gains tax was introduced in Canada.
What is the difference between adjusted cost base and fair market value?
Adjusted cost base is generally what the property cost you, including eligible improvements and acquisition costs. Fair market value is what the property is worth at a specific date. The appraisal establishes the fair market value; your accountant calculates the gain.
When is the family home valued in a separation or divorce in BC?
Under the BC Family Law Act, family property is generally valued at its fair market value as of the date of an agreement or the date of trial, not automatically the date of separation. The date of separation determines what counts as family property. A court may order a different date in limited circumstances. Your lawyer confirms the date that applies, and we value as of whatever date your matter requires.
Can the home be valued as of the date of separation instead?
Sometimes. A court may depart from the default date where an equal division at the current value would be significantly unfair, for example where one spouse alone maintained the property after separation. This is decided case by case. We prepare the valuation as of whichever date counsel or the court directs.
Can one appraiser act for both spouses?
Yes, and it is common. In BC family matters a single, jointly appointed appraiser is often preferred, and an appraiser's duty is to the court, to provide an impartial opinion, not to advocate for either party. Our independence is the same whoever retains us.
What is an expert witness appraisal?
It is an appraisal prepared to the evidentiary standard of a legal proceeding, where the appraiser may be called to explain and defend the valuation under cross-examination. The methodology, evidence, and reasoning are documented so the conclusion holds under scrutiny.
What happens if my matter goes to the BC Supreme Court?
Expert reports in BC Supreme Court civil matters must generally be served on all parties at least 84 days before trial, with responding reports due at least 42 days before trial. We prepare every litigation report to that evidentiary standard from the outset, rather than adapting it later under deadline pressure.
Do you prepare valuations for date of death and probate?
Yes. We prepare retrospective valuations establishing fair market value as of the date of death, supported by the market evidence as it stood at that time, for probate, estate administration, and the capital gains that arise when the estate later disposes of the property.
Who orders an estate or probate appraisal, and who relies on it?
Typically the executor or estate administrator retains the appraisal. The report is prepared so it can be relied upon by all beneficiaries, the estate's lawyer or accountant, and the courts if the estate is contested.
Why would a seller get an appraisal before listing?
A pre-listing appraisal gives an independent, evidence-based benchmark of value before going to market. For distinctive or high-value homes where comparable sales are thin, it grounds pricing in documented analysis and gives both agent and owner a credible position in negotiation.
How is this different from the CMA I provide as the agent?
A CMA is your pricing opinion as the listing professional and remains essential to strategy. An appraisal is an independent third-party valuation prepared to CUSPAP. The two work together: the appraisal supports the price with documented evidence, which is persuasive with buyers, lenders, and in negotiation.
Will an appraisal help if financing comes in under the agreed price?
An independent appraisal can support the agreed price with documented evidence, giving the parties and the lender a defensible basis to work from when a financing valuation falls short.
My client's home is unique with few comparables. Can it still be appraised reliably?
Yes. Distinctive and architectural homes are our focus. Where direct comparables are limited, value is established through careful analysis and documented reasoning rather than a simple price per square foot.
Do I need an appraisal to refinance my home?
Most lenders require an independent appraisal to support a refinance, particularly for renewal, rate negotiation, or increasing the loan amount on a first mortgage.
What about a second or third mortgage?
Private and institutional lenders financing a second or third mortgage position rely on an independent valuation to confirm there is sufficient equity to support the loan, since their position sits behind the first mortgage.
Can an appraisal support a private or bridge lending decision?
Yes. Private lenders often require an independent valuation before extending bridge or short term financing, particularly on high value or complex property where the amount at risk is significant.