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How does an appraiser determine market value?

The appraised value of a residential property is based on historical evidence from the market. Three or more comparable properties are selected that are the most similar to the subject and adjustments are made (plus or minus) to reflect the differences. It is very rare to find two identical properties and there are typically several adjustments made to each comparable, such as:

  • Location
  • Site size
  • Dwelling size
  • Age & Condition
  • Number of bathrooms
  • Basement finishing
  • Garage Size
  • Extras (this covers dozens of elements such as flooring, kitchen quality, fireplace, air-conditioning, landscaping, decks & patios, roof finishing, whirlpool tub, and many more)

How much of an adjustment is made for each of these elements. That is where experience and judgment come in.

Why is the market value of my property different than the assessed value?

Assessment is a measure of value for the purpose of apportioning the local tax levy for individual property owners. The assessed value is based on a “mass appraisal” computer model that encompasses an entire district or neighbourhood and completed on an annual basis. The appraised value or market value is done on an individual property at a specific point in time (effective date). The AIC defines market value as follows…“The most probable price which a property should bring in a competitive market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus…”.

What can I do to increase the market value of my property?

There are any number of renovations and upgrades that you can do that can add market value to your property. Click on the “Tools” option on the home page of this website for some ideas for renovating your property and a range of expected returns for the project.

service area

  • Edmonton
  • Sherwood Park
  • St. Albert
  • Fort Saskatchewan
  • Spruce Grove
  • Stony Plain
  • Leduc
  • Beaumont
  • Devon
  • Calmar
  • Rural Properties within 50 miles of Edmonton

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