What is an Appraisal?

When you hire an appraiser with Gateway Appraisal & Consulting Group Inc, you are hiring a professional that is dedicated in providing an objective opinion of value or estimate of the described property, as supported by the presentation of relevant data analysis.


A real estate appraisal is basically a formal opinion of value prepared as a result of a retainer, intended for reliance by identified parties, and for which the appraiser assumes responsibility.


Our appraiser will typically start a valuation process by collecting data. The data collection is generally grouped in three categories.

  • The first is from the subject property. The appraiser will inspect the subject property to confim the size of the property, condition of the improvements and take note of any positive or negative features of the property.
  • The second is from the market area. The appraiser will take note of the characteristics of the region, the city and neighborhood. The appraiser will learn about trends in the social, economic, governmental and environmental forces that affect property value.
  • The third is from the comparable property. The appraiser will collect data from sales, listings, offerings, vacancies, cost and depreciation, income and expenses, and cap rates. This form of data is generally gathered to understand the supply and demand regarding the subject property.

This collection of data is then analyzed through three different approaches to value.

  • The first is the Cost Approach.
  • The second is the Direct Comparison Approach.
  • The third is the Income Approach.

The Cost Approach is essentially deriving the value of the land and then adding to it the estimated cost to construct the improvement and subtracting all causes of depreciation.

The Direct Comparison Approach basically compares the subject property with similar type properties that have sold. The appraiser will typically apply adjustments for the differences and finally establish a value range which the subject will fall into.

The Income Approach is basically capitalizing or discounting income streams at a specific rate in order to establish value. This approach is used for income producing properties and not residential dwellings of less than 4 units.

When all three approaches are addressed, the appraiser will present his/her opinion in a report format that will reflect the experience and judgment that has been applied to the study of the assembled data.

When Do You Need an Appraisal?


Primary, Secondary and Mortgage Refinancing


Every year, countless people buy, sell or refinance their own slice of the Canadian Dream. Most, if not all, of these transactions include not only the Realtor, the mortgage company or lender, or lawyers or conveyancers, but also a real estate appraiser to ensure that all aspects of the transaction are completed and that a clear title passes from the seller to the buyer.


A real estate appraisal for the purpose of mortgage financing is generally required by the lender in order to establish that the value of the property will be sufficient collateral for the amount of the loan.


It has become an understood and accepted part of a real estate transaction.

Employee Relocations


When a corporate employee or third party relocation company is required to hire a relocation appraiser, its critical for the success of the employee transfer process that a relocation appraiser with credentials and experience in relocation appraising be selected. Here at Gateway Appraisal & Consulting Group Inc, we will always strive to provide the best possible service, market knowledge and report quality in relation to our peers. As a result of our firsthand experience in the industry, we understand better than most, the corporate clients needs for timely and reliable service and their concerns for their employee and his/her family whom they clearly value as a strength within their organization.


The Employee Relocation Appraisal Report is a report that requires substantial narrative components and addenda to adequately address the clients' concerns and needs. The form and guidelines for the relocation appraisal differ substantially from the traditional mortgage appraisal.


By selecting our firm for your relocation appraisal, you are assuring a more trouble free move to your new job location with the confidence that an experienced local appraiser whose practice and training is focused on relocation appraisals was chosen.

Division of Asset


An appraisal is almost always a requirement that involves division of assets. The appraisal is used to determine an equitable division of the shared ownership of real estate. Probably, the most common instance of shared ownership is where a married couple owns the family home. That equal, undivided interest is referred to as a joint tenancy. Upon death, the interest of the deceased automatically goes to the survivor or survivors. Where two or more persons who are not married and own interest in a single property or an investment portfolio, such owners are tenants in common. Each tenant in common owner may sell or bequeath his or her interest and, upon death, that interest becomes part of his or her personal estate.


Gateway Appraisal & Consulting Group Inc will provide valuations of real estate providing the owners of these interests with valuable and independent analysis, particularly in the case of a sale of such an interest. At times, these appraisal reports will be required for Court purposes.

Capital Gains ( Valuation Day )


In 1972, the Canadian government introduced a tax on capital gains. Individuals that owned a property as of December 31, 1971 or later require an appraisal of the value of the property as of that date. Capital gains is only calculated on the capital appreciation of the property since Valuation Day. Gateway Appraisal & Consulting Group Inc has a database that allows us to provide a Valuation Day opinion of value.

Assessment Appeals


The Province of British Columbia regularly assesses and updates assessments on real estate of all types. If you are not satisfied with your property assessment, one of our appraisers can be retained to perform an evaluation of your assessment and if necessary represent you in an assessment appeal.



A wide range of consulting services can also be provided to clients proposing to develop investment properties, for going concern valuations, highest and best use studies, feasibility studies, building expansion, lease analysis, asset management etc.

Appraisal Ethics


Appraisal is a profession, and appraisers are professionals. In our field as with any profession we are bound by ethical considerations.


An appraiser's primary responsibility is to his or her client. Normally, in residential practice, the appraiser's client is the lender ordering the appraisal to decide whether to make the mortgage loan. Appraisers have certain duties of confidentiality to their clients -- as a homeowner, if you want a copy of an appraisal report, you normally have to request it through your lender -- obligations of numerical accuracy depending on the assignment parameters, an obligation to attain and maintain a certain level of competency and education, and must generally conduct him or herself as a professional. Here, we take these ethical responsibilities very seriously.


Appraisers may also have fiduciary obligations to third parties, such as homeowners, both buyers and sellers, or others. Those third parties normally are spelled out in the appraisal assignment itself. An appraiser's fiduciary duty is limited to those third parties who the appraiser knows, based on the scope of work or other written parameters of the assignment.


There are ethical rules that have nothing to do with clients and others. Appraisers must keep their work files for a minimum of five years.


We only perform to the highest ethical standards possible. We don't do assignments on contingency fees. That is, we don't agree to do an appraisal report and get paid only if the loan closes. We don't do assignments on percentage fees. That is probably the appraisal professionís biggest no-no, because it would tend to make appraisers inflate the value of homes or properties to increase their paycheck. We don't do that. Other unethical practices may be defined by state law or professional societies to which an appraiser belongs.


The Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP) also defines as unethical the acceptance of an assignment that is contingent on "the reporting of a pre-determined result (e.g., opinion of value)," "a direction in assignment results that favors the cause of the client," "the amount of a value opinion," and other things. This means you can be assured we are working to objectively determine the home or property value.


You can be assured of 100 percent ethical, professional service.