Definition
An appraisal report is an official document produced by a certified appraiser (CA) — member of the Ordre des évaluateurs agréés du Québec (OEAQ) — that estimates the market value of a property at a specific date using recognized appraisal methods.
Three main methods: - **Direct comparison**: comparison with recent sales of similar properties in the same area (predominant method for residential housing). - **Income approach**: capitalization of net rental income (used for income properties). - **Cost approach**: land value + building replacement cost minus depreciation (used for atypical properties).
Lenders order an independent appraisal for: - Refinancing (to calculate available amount) - Atypical or rural properties - Files where the purchase price appears disproportionate to market
For most residential A transactions, lenders now use internal automated valuation models (AVM), faster and at no cost to the borrower. Manual appraisals generally cost between $300 and $600 and are at the borrower's expense.