Halladay Appraisal Services Ltd. has answers to "Frequently Asked Questions"

Halladay Appraisal Services Ltd. is always happy to address any concerns you might have about appraisals in Winnipeg and the surrounding area. Don't hesitate to contact us today.

Describe an appraisal
Describe what an appraiser does
What are the reasons I would request a real estate appraisal?
What is the difference between an appraisal and a home inspection?
My agent performed a CMA for me. Is that the same as an appraisal?
What's in an appraisal report?
Once the report has been delivered, how can I have certainty that the final number is veritable?
How hard is it to become certified?
Who hires an appraiser?
Where does Halladay Appraisal Services Ltd. get the data used to estimate values in Winnipeg and the surrounding areas?
How can a licensed appraiser help me?

Should I do anything in advance of the appraisal inspection
Define "Market Value"
Who has rights to the appraisal report?
I want to get more for my house. Where should I spend money renovating?



Describe an appraisal   (Go to list of  questions)

The procedure of performing an appraisal consists of an estimation which forms an opinion of value. This opinion or estimate is figured using a formal method that commonly uses the three main "common approaches to value". One of them is the Cost Approach - which is how much capital would be required to replace the improvements, minus physical deterioration and other factors, then adding the land value. Easily the most common approach in finding the value of a house is the Sales Comparison Approach which concerns making a comparison to similar houses close by. The Sales Comparison Approach is commonly the most definitive and best indicator of value for a residence. The Income Approach is primarily used for finding the market value of income-producing properties based on what an investor would pay based on the amount of income a property produce.

Describe what an appraiser does   (Go to list of  questions)

An appraiser generates an unprejudiced and well substantiated assessment of market value, in the support of real estate exchanges. Appraisers demonstrate their professional findings in appraisal reports.


What are the reasons I would request a real estate appraisal?   (Go to list of  questions)

There are many reasons to purchase an appraisal from Halladay Appraisal Services Ltd. with the most common reason being real estate and mortgage transactions. Some other reasons for getting an report include:
  • If you are applying for a loan.
  • If you would like to lower your property tax burden.
  • To show a homeowner has 30% equity and remove Primary Mortgage Insurance.
  • To challenge improperly assessed property taxes.
  • To settle an estate.
  • To give you a negotiating tool when purchasing a home.
  • To find an honest price when listing your home.
  • To ensure parties are provided just compensation in eminient domain cases.
  • Because an official agency such as the IRS requires it.
  • If you are ever involved in a civil case.
For a more extensive description of the appraisal process click here.


What is the difference between an appraisal and a home inspection?   (Go to list of  questions)

The appraiser is not a home inspector and does not do a full home inspection. A third-party home inspector will evaluate the structure of the property, from the roof to the foundation. The usual property inspector's report will include an evaluation of the condition of the house's heating systems, central air conditioning system (temperature permitting), interior plumbing and electrical systems, the roof, attic, and visible insulation, walls, ceilings, floors, windows and doors, the foundation, basement, and visible structure.

My agent performed a CMA for me. Is that the same as an appraisal?   (Go to list of  questions)

Simply, they have nothing in common. The CMA uses market trends to conduct most of their business. Appraisals use similar sales which are valid resources. In addition, the appraisal checks other factors like condition, neighborhood and construction prices. All a CMA does is generate a "ball park figure." Delivering a defensible and careful analysis, an appraisal will give a clear opinion of value.

But the largest differentiator is who's doing the report. A CMA is created by a real estate agent who may or may not be trained in technical valuation concepts or even have a handle on market trends. The appraisal is produce by a licensed, certified professional who makes a living out of valuing properties. Moreover, the appraiser is an unbiased party, with no vested interest in the value of a home, unlike the agent, who gets a commission based upon the price of the home.

What's in an appraisal report?   (Go to list of  questions)

The main point of an appraisal report is to provide a value opinion, and depending on the scope of the report, one will customarily see the following:
  • The client and whose purposes the appraisal is to serve.
  • How the appraisal is supposed to be used.
  • The purpose of the appraisal.
  • The type of value reported and a definition of that value.
  • The effective date of the appraisal.
  • Characteristics of the property that have a bearing on the value, including: location, physical description, legal attributes, economic attributes, the property rights in question, and non-real estate items included in the valuation, such as personal property, permanent equipment installations and even intangible considerations.
  • Any known easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, and other items of a similar nature.
  • Division of interest, such as fractional interest, physical segment and partial holding.
  • What was entailed in the process of completing the job.
For a more detailed look at what goes into an appraisal report click here: Sample Appraisal Report


Once the report has been delivered, how can I have certainty that the final number is veritable?   (Go to list of  questions)

In communicating an appraisal report, each appraiser must ensure the following:
  • That the information analysis implemented in the appraisal was suitable.

  • That significant errors of omission or commission were not committed individually or collectively.

  • That appraisal services were done in a careful and conscientious fashion.

  • That a believable, defensible appraisal report was communicated.
There are rigorous education and experience requirements that must be fulfilled in order to get an appraisal license in MB Canada. In addition, appraisers must follow a strict industry code of ethics and respect national standards of practice for real estate appraisal. The guidelines for working up an appraisal and documenting its results are insured by enforcement of the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP).


   (Go to list of  questions) Licensing and certification takes classroom study, tests and experience working under a supervisory appraiser. Once licensed, he/she is required to take continuing education courses so that the license doesn't expire. To see the specific requirements for any state click here.

Who hires an appraiser?   (Go to list of  questions)

Mortgage lenders are an appraiser's typical customer, requiring their services to ensure real estate involved in a mortgage transaction is enough to cover a loan balance in the case of default. Appraisers also provide opinions in litigation cases, tax matters and investment decisions.

Where does Halladay Appraisal Services Ltd. get the data used to estimate values in Winnipeg and surrounding areas?   (Go to list of  questions)

Compiling information is one of the primary roles of an appraiser. Data can be classified as either Specific or General. Specific data is gathered from the home itself; Location, condition, amenities, size and other specifics are documented by the appraiser while on site.

General data is received from a numerous places. Local Multiple Listing Services (MLS) have information on recently sold homes that might be used as comparables.  Halladay Appraisal Services Ltd. also has access to the Provincial Assessment data which includes sales throughout the province and SABRE, Solds for Appraisers & Brokers of Real Estate.   To double-check actual sales prices, we research items in the assessor's office and other public documents that are usually online nowadays. 

And last but not least, the appraiser assimilates general data from his or her past experience in doing assignments for other properties in the same market.


How can a qualified appraiser help me?   (Go to list of  questions)

An appraisal is a worthwhile anytime the value of your home is pertinent to some financial decision. When selling your home, an appraisal assists you in setting the most appropriate price. If you're buying, it makes sure you don't overpay. For parties settling an estate or divorce, an appraisal from Halladay Appraisal Services Ltd. is the best documentation to ensure assets are split up evenly. Simply put, a house is often the single, largest financial asset anybody owns. Don't make decisions in the dark with a professional appraisal.


Should I do anything in advance of the appraisal inspection   (Go to list of  questions)

The first step in most appraisals is the property inspection. During this process, the appraiser will come to your home and measure it, determine the layout of the rooms inside, confirm all aspects of the home's general condition, and take several photos of your house for inclusion in the report. Inside, pick up any clutter and make sure we can find our way to things like furnaces and water heaters. On the outside, trim any bushes so we can be free to get an accurate measurement of exterior walls.

The following items, if available, will help your appraiser to provide a more accurate appraisal in a shorter period of time:
  • A plot plan or survey of the house and land (if available).
  • A list of any personal property that will be left behind and sold with the home, such as an oven, or a washer and dryer, if applicable.
  • Any "Homeowners Associations" agreements or, if applicable, condo covenants or fees .
  • A copy of the current listing agreement and broker's data sheet and Purchase Agreement if a sale is "pending".
  • A bill for your most recent real estate taxes which should also contain a legal description of the property.

Define "Market Value"   (Go to list of  questions)

In real estate appraising, Market Value is commonly defined as:

"The most probable price (in terms of money) which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: the buyer and seller are typically motivated; both parties are well informed or well advised, and acting in what they consider their best interests; a reasonable time is allowed for exposure in the open market; payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale."



Who has rights to the appraisal report?   (Go to list of  questions)

In most real estate transactions, the appraisal is ordered by the lender. Even though it's the buyer that eventually pays for the report, the lender is the intended user. The buyer is certainly entitled to a copy of the appraisal - it's usually included with all the other closing documents - but is not entitled to use the report for any other purpose without permission from the lender.

This rule doesn't apply when a home owner hires an appraiser directly. The appraiser must stipulate the intended use and the intended user of the appraisal in the report. 

I want to get more for my house. Where should I spend money renovating?   (Go to list of  questions)

A home's location - what city it is in and even what part of that city - is key to this popular question. For example, installing an inline humidifier could be nice in arid regions, but completely useless near the coast!

As a rule, the most value returned from renovating a home comes in the kitchen and bathrooms.  But we completed renovations on our homes for various reasons.  Click here to find out How to Value Your Renovations.   AIC-How-to-Value-Your-Renovations-web.pdf