When you hire a member of the New Brunswick Association of Real Estate Appraisers (NBAREA) (excluding an Affiliated Member), you are hiring a dedicated professional appraiser that will work for you. The practice of real estate appraisal includes the analysis and evaluation of real estate, or any interest therein, for the purpose of providing a value and for providing advice and counselling with respect to value. Your appraiser will provide an objective estimate or opinion of value of the described property.
An appraisal report contains information such as: the purpose of the appraisal, other qualifying conditions, neighbourhood conditions, property identification, data analysis, the value estimate and the effective date of the appraisal. All reports are signed and may contain supporting material such as maps, charts, or photographs.
Reports will demonstrate either one or more of the three basic methods used to arrive at an indication of value:
- The Cost Approach estimates the cost of building a new property identical to the subject being appraised, based on current prices and building codes - subtracting accumulated depreciation and adding the estimated land value.
- The Income Approach may be used for income-producing properties and is based on the theory that value is the present worth of the income stream the property is capable of producing when developed to its fullest use. The net operating income from the property is capitalized into value by the appropriate method and rate.
- The Direct Comparison Approach is based upon the theory that an informed purchaser would pay no more for the property than the cost of acquiring a similar property. The value estimate is based on the selling price of comparable properties.
VALUE ADDED BENEFITS
The cornerstone of the appraisal profession is knowledge. Designated members of the NBAREA will put their years of training and knowledge to work for you. Keeping up-to-date with current market trends and legal changes that may affect real estate values, appraisers offer an informed valuation. NBAREA members are subject to mandatory liability insurance.
These members are qualified to offer valuation and consulting services and expertise for all types of real property.
These members are qualified to offer valuation and consulting services and expertise for individual, undeveloped residential dwelling sites and dwellings containing not more than four self-contained family housing units.
These members are required to have their reports co-signed by a designated member in good standing and registered in the Province of New Brunswick.
A real estate appraiser who resides outside New Brunswick but is granted a temporary membership with NBAREA to work on a specific project in New Brunswick.
Updated September 2015
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