Book 2 - Appraisal Institute of Canada

CRA Focus
By Dianna LeBreton, CRA, Member CRA Focus Committee
The inspection process
One of the most important aspects
of the real estate appraisal is the
inspection. Whether inspecting new
or existing, one- or two-family dwellings, threeor
four-unit buildings, the appraiser must have a
good overall knowledge of construction methods,
building materials, plumbing, mechanical,
electrical systems, and all products and systems
relating to the structure. Keep yourself up to date.
When you see something new or different, ask
questions, or, when you get back to the office,
look it up on the internet, it is a great source of
information and explanations.
The process of a building inspection involves
the collection of information and data pertaining
to the subject property. A detailed inspection
enables the appraiser to provide an accurate
description of the property and allows you to
conduct a thorough analysis of the subject. This
results in a more accurate appraisal evaluation
and provides the client with the necessary
information to make an informed decision.
When I begin an inspection, I advise the
owner or whoever is present that I will start in
the basement; work my way through the interior
of the dwelling; then proceed with the exterior,
and that I will most likely have some questions for
them once I have seen the property. Sometimes,
the owner may want to accompany me. This
can be a distraction. Generally speaking, telling
the person what I will be doing results in he or
she giving me free reign of the dwelling. It is
important to remember that most homeowners
have never seen or had an appraisal done
and have no idea what the process entails.
Appraisers should view themselves as promoters
of the profession. Take time to ensure that the
homeowner understands the value of having the
home appraised. They may refer you to a friend,
neighbour or relative once they understand the
difference between you appraising their property
and a realtor advising them of the value of their
home.
It is very important to be consistent, so perform
all inspections in the same manner to ensure that
nothing is missed. I like to start in the basement.
The foundation is the bones of the structure and
will tell you a lot about the building. What is the
foundation type – poured concrete, block, cinder
block, stone? Are there support beams? In an older
dwelling, if you can see the actual frame, check
for wood rot. Is there evidence of dampness and
or mold?
Next is the dwelling’s heating system. What
type of heating system does the house have? Is
it a forced air furnace, hot water boiler system,
baseboard heating, or radiant heat? Is it fired by
Canadian Property Valuation Volume 52 | book 2 | 2008 Évaluation Immobilière au Canada 29