How your property is valued depends on the property type, and the specifics of the valuation assignment. There are three approaches to value: Cost Approach, Direct Comparison Approach, and Income Approach.

The Cost Approach estimates how much it would cost to replace the improvements on the property. Accumulated depreciation is subtracted from that figure. The value of the underlying land is estimated, and the cost of improvements is added to the land value to arrive at the total estimated value.

The Direct Comparison Approach is based on the selling prices of comparable properties. This method compares your property to others that have recently sold. Each relevant sale is analyzed adjustments are applied for differences between the subject property and the comparable sales. These sales are used to form the basis of the value estimate.

The Income Approach derives an estimate of value based on the net income a property produces. Typically, lease rates, income, and expense data is analyzed, and the net operating income is determined. An appropriate capitalization rate is estimated, and these two figures are used to arrive at a value estimate for the property. Many considerations go into both the estimate of net operating income, and the selection of a capitalization rate.

Designation from the Appraisal Institute of Canada is an extensive process. While the path to designation is constantly being revised/re-worked, the process essentially requires: an undergraduate degree from a university; post graduate certificate in real property valuation; completion of a demonstration report; two years work experience; applied experience written exam; professional competency interview.

Liverpool Appraisal’s service coverage area includes the GTA, Northumberland County, Peterborough and Kawartha Lakes.