Residential Appraisals: Frequently Asked Questions

Your Trusted Residential Appraisal Experts in Victoria, BC

At D. Fritz Appraisals Inc., we provide professional, accurate, and unbiased home appraisals in Victoria, BC, and surrounding areas. Whether you’re buying, selling, refinancing, or investing in real estate, a professional appraisal ensures you clearly understand your property’s market value. 

Our certified appraisers follow strict practices to deliver comprehensive and lender-approved appraisal reports. Below, we’ve answered common questions about home appraisals in British Columbia, helping you confidently navigate the process.

Why Should I Get an Appraisal?

Having your home appraised is essential for several reasons:

• If you’re selling your home, an appraisal helps determine its fair market value, ensuring you list it at an appropriate price.
• If you’re buying a home, an appraisal provides an unbiased estimate of the property’s value to ensure you pay a reasonable price.
• If you’re renovating and refinancing, lenders require an appraisal to assess the current value of your home and its potential value post-renovation.
• If you’re applying for a mortgage or home equity loan, banks and financial institutions require an appraisal to determine loan eligibility.

What Is the Process of an Appraisal?

An appraisal involves two key steps:

1. Property Inspection – The appraiser inspects the home to verify:

• Size, location, and number of rooms
• Quality of construction and built-in features
• Site improvements, views, and overall condition
• Any deficiencies or areas needing repairs

2. Appraisal Report Compilation – The appraiser then researches, analyzes, and combines data from various reliable sources to create an appraisal report.
   
   Planning on getting an appraisal? Check out our Pre-Appraisal Checklist for Homeowners.

How Does the Appraiser Determine a Property’s Value?

There are three recognized valuation approaches:

• Direct Comparison Approach – The value is derived by analyzing recent sales of comparable properties and adjusting for differences.
• Cost Approach – The value is calculated by estimating the cost to replace the land and improvements, subtracting depreciation for the dwelling’s age.
• Income Approach (for rental properties) – This method assesses the property’s value based on projected rental income.

For a more complete look at what home appraisers look for, read our blog Home Appraisals – What Do They Look For?

What Affects the Value of My Property?

Several factors influence a home’s appraisal value, including:

• Location – Desirability of the neighbourhood, proximity to amenities, schools, and transportation
• Market Conditions – Supply and demand in the real estate market
• Size and Layout – Square footage, number of bedrooms/bathrooms, and functional layout
• Condition of the Property – Age, renovations, and maintenance
• Zoning and Future Potential – Development possibilities and municipal zoning regulations

How Long Do Appraisals Take?

A standard residential appraisal in Victoria, BC, typically takes a few hours for the on-site inspection. The final report is usually completed within 24 to 72 hours, depending on complexity, property type, and market conditions.

How Are Houses Appraised?

Appraisals are conducted by licensed professionals following strict guidelines from the Appraisal Institute of Canada (AIC). The appraiser inspects the property, collects relevant data, and compares it to recent sales in the area to determine fair market value.

Who Pays for an Appraisal?

The homebuyer, homeowner, or lender requesting the appraisal is responsible for the fee. If an appraisal is required for a mortgage application, the lender may arrange it, but the borrower typically covers the cost. Note that in this situation, the borrower may not be entitled to see the appraisal as it was the lender who ordered the appraisal (even though the borrower was the one to pay for the appraisal). 

When Do Appraisals Happen?

Appraisals usually occur:

• Before a home purchase (to confirm the purchase price aligns with market value)
• Before refinancing (to assess the current home value for a mortgage or loan)
• For estate settlements and divorces (to fairly divide assets)
• For property tax disputes (to challenge tax assessments)
• A new construction appraisal (to find the “as complete” value of a new build)
• Before doing major renovations (to find the before and after value)

How Does an Appraisal Affect a Mortgage?

Mortgage lenders use an appraisal to determine loan approval and terms. If a home appraises for less than the purchase price, the buyer may need to:

• Renegotiate with the seller
• Increase the down payment
• Secure additional financing

Do Homes Usually Appraise for the Selling Price?

Not always. While homes often appraise near the agreed-upon selling price, market fluctuations, overpricing, or differing buyer/seller expectations can result in a lower valuation. 

What Qualifications Does an Appraiser Have?

All our appraisers are members in good standing with the Appraisal Institute of Canada (AIC) and hold either:

• Canadian Residential Appraiser (CRA) designation
• Accredited Appraiser Canadian Institute (AACI) designation

Each appraiser undergoes extensive education and accreditation through the University of British Columbia Real Estate Division and holds professional liability insurance under Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP).

Who Can See My Appraisal?

Appraisal reports are confidential and shared only with the original requestor (even if they weren’t the party to pay for the appraisal) unless authorized in writing to be released to another party.

Why Choose D. Fritz Appraisals Inc.?

• Fast and efficient turnaround times
• Approved by major banks, credit unions, and private lenders
• Experienced appraisers following strict industry standards
• Unbiased, professional residential appraisal services

We’re proud to offer exceptional services for our clients. We tailor our appraisal reports to meet the requirements of each lender, providing accurate, timely and thorough valuations put together by our highly educated professional team.

For more information or to schedule an appraisal, contact us today!