Helpful Information for Buyers and Sellers

Confusions in Buying and Selling Real Estate

2004/06/27 Originally published in the Vernon Morning Star.

Are you ever confused by words like home inspection, appraisal, assessment, evaluation, competitive market analysis? Most people are. I will attempt to give you mini definitions that should sort this out for you.

Home Inspections

Home inspections are used to find defects in the construction of the home, including roof, foundation, plumbing, heating, wiring etc. These are performed by licensed Home Inspectors, not realtors or appraisers.

Appraisals

Appraisals are opinions of value done by accredited professionals that are educated and certified by the Appraisal Institute of Canada. Their services are commonly requested by banks and Vernon mortgage brokers so that the banks can determine that the value of the property is sufficient for their financial security. The beneficial by-product of this appraisal is that the buyer knows whether or notthey are paying a fair and reasonable price for the property. Certified appraisals are primarily for purposes of establishing market value but they also determinereplacement cost of the home. Market value and replacement cost are most often not the same. If you are needing to know your property's value for legal or income taxation purposes, you are best advised to use this type of appraisal.

Assessments

An assessment is done by government employees working with the B.C. Assessment Authority. It is their job to put a value on our homes and other properties based on this years' value to be used for next years' taxes. These are very general opinions and should never ever be used to establish a sale or purchase price.

Evaluations & CMAs (Competitive Market Analysis)

Evaluations and Competitive Market Analysis (C.M.A.'s) are interchangeable terms. These are done by realtors and are the most common way consumers determine market value. They use a similar process to the Certified Appraisers. Firstly, they view the property and establish the size of the home and land. They note both the good and not so good features of the home. Realtors then search out the sales that have occurred on the recent market. Hopefully, finding three sales to get an average. They are aiming to find homes that are most like the evaluation subject and in the most similar areas. They make value adjustments upward for things like new kitchens and downward for things like needing work, repair, paint etc. The art of this process is assessing what we call Buyer Appeal, and in knowing which market trends are creating particular added value to certain types of properties.

Jane Field works with RE/MAX Vernon. Jane has over 30 years experience in the Real Estate business. To suggest topics for future articles or to ask Jane questions, email or call 503-3755.

RE/MAX Vernon | 250.503.3755 | Toll free 1.888.503.3755 | 5603 - 27 ST | Vernon | BC | V1T 8Z5 | Canada

Downsizing 2008-02-28 2008/02/28 Originally published in the Vernon Morning Star.To many of us, facing downsizing is a dilemma. The mere thought of scaling down is overwhelming. How does one go from the typical family home of three bedrooms, full basement and an attached garage... [Read More]
Fixtures and Chattels 2009-09-30 2009/09/30 Originally published in the Vernon Morning Star.In the sale of every home there are included items. Some are included as standard, others are not. Items that are attached are considered fixtures and unless specifically deleted in a sales contract,... [Read More]
Holiday Home Safety 2004-12-12 2004/12/12 Originally published in the Vernon Morning Star.Keep your Christmas bright and happy by putting safety first. Start by keeping your driveway and sidewalks clear of snow and ice. Every year a few people slip, fall and break their wrist or hip. Do... [Read More]
More Tips on Holiday Home Safety 2007-11-27 2007/11/27 Originally published in the Vernon Morning Star.It's that time of year again that I like to remind homeowners of the extra care needed to protect ourselves against both fire and theft.Lit candles help provide ambience during our holiday get togethers.... [Read More]
Holiday Home Security 2005-12-04 2005/12/04 Originally published in the Vernon Morning Star.We can get much too busy at this time of the year but I hope you'll take the extra time to take care of keeping your home safe.If you have a wood burning fireplace, don't use it unless you have had... [Read More]
I'll be Home for Christmas 2005-12-18 2005/12/18 Originally published in the Vernon Morning Star.As this article arrives on your doorstep this morning, it finds most of you preparing to dash out the door to take on the arduous task of completing your Christmas shopping. It seems that whether it's... [Read More]
Marijuana Grow Ops 2007-10-30 2007/10/30 Originally published in the Vernon Morning Star.Grow operations and methamphetamine labs are a problem these days which we could all live without. Such operations are a fact of life and buyers of real estate need to be wary. These operations often... [Read More]
Be Pro-Active About Home Heating 2008-06-18 2005/09/25 Originally published in the Vernon Morning Star.At the anticipated prices of home heating fuels it's time to seek out every way to save energy.If you have never upgraded your attic insulation, now's the time. Most heat is lost through the ceiling... [Read More]
What is an Evaluation? 2009-04-21 2009/04/29 Originally published in the Vernon Morning Star.Evaluations are the process by which Realtors© arrive at a professional opinion of the value of a property. For all intents and purposes it is a very similar method to that which certified appraisers... [Read More]