FREQUENTLY ASKED QUESTIONS
Q. Will my property be appraised in its current condition or before flood damage?
A. All properties are being appraised in the condition that they were in before the high water and flooding in Spring/Summer 2011.
Q. Is this based on current values?
A. All appraisals are being based on an “effective date” of April 30, 2011. This is before Lake Manitoba rose to record levels and before the general buying public was aware that there would be any issues that would affect the property.
Q. With so few sales in the area – how do you do an appraisal?
A. When completing an appraisal, if there are not enough local sales, then other districts with similar site influences are researched to find similar type properties. With few sales available on Lake Manitoba (and some are sold through family and may not be a true indication of market value), Lake Winnipeg, St. Malo, and in some instances Lac Du Bonnet and surrounding areas are considered for comparable sales. Adjustments are made for differences in land value/location, out buildings, decks, size, bathrooms, and overall finish quality.
Q. How do you appraise a property that has been damaged?
A. When I am inspecting properties, I can generally visualize what the property looked like before. Yard sites, out buildings, and beachfront are in the same condition as they were though, so pictures of these areas are important so that I can see what it used to look like and will place values accordingly.
Q. What can be included in the appraisal?
A. I have been told different information on what can be included in outbuildings from different people. The Province has not yet provided official information as to what is included in the case of a buy out on properties. I am basing my appraisals on what I was able to include when appraising properties at Breezy Point, an area which experienced flooding and ice jamming in 2009. Therefore, I am including all interior amenities, such as central or window air conditioning (must be on site), wood stoves, fireplaces. Exterior amenities include decks, patios, balconies, gazebo’s, docks, boat houses, etc. What is not included are pull trailers, 5th wheel trailers that are movable.
Q. How long does an appraisal take?
A. An appraisal inspection can take 15-40 minutes, dependant on size of property and its amenities, as well as access to the property itself.
Q. When do I get my report?
A. Due to the number of appraisal requests, anticipated time for reports being forwarded to you will be 8 weeks (subject to change dependant on number of inspections needing to be completed).
Q. How is the report delivered to me?
A. Initially an e-mail copy will be provided. A hard colour copy will be mailed out when all properties have been appraised.
Q. What is the cost?
A. The appraisal cost is $275 + GST and $5/person for mileage, based on a minimum of 10 inspections in the area per day.
Q. What are the credentials of the appraiser?
A. I have a CRA designation, obtained through the Appraisal Institute of Canada. This designation is accepted across the country by lending institutions, courts, and most importantly in this instance, by the Province of Manitoba.
Q. Do I need an appraisal? What is the purpose of an appraisal right now?
A. I cannot answer if you currently need an appraisal. Different people are obtaining appraisals right now for different reasons. Some because their properties are so damaged that there will be a buy-out and they will require one from the province. Some people are concerned about buy-outs in the area for the future, whether it be 6 months, 1 year, 2 years, or 5 years. Some people want properties inspected before there is more damage than what already is. To have an appraisal completed is a personal decision, and not mandatory.
Q. What if I don’t know if I want an appraisal now, or it is not in my budget?
A. Appraisals can be completed at a later date. If properties are damaged and not able to be inspected, then information is obtained through the Provincial Assessment department, and along with other legal information and photo’s to determine finishing and construction quality, and appraisal can be completed that is fairly accurate. If it is not in your budget right now, take pictures of the entire property, inside and out, and make a list of improvements.
