Ergil Bains & Associates is a full service Real Estate Appraisal and Reserve Fund Study company located in the City of Edmonton.
A real estate appraisal entails a market value estimate of the worth of a property. A real estate appraisal is created by utilizing one or more of the following approaches:
- Direct Comparison Sales Approach involves comparing the subject property with sales of other similar properties in the region. Adjustments are made in order to relate to the subject property and arrive at a unit value estimate.
- Income Approach involves estimating the potential gross income the subject property is able to achieve through existing leases or by utilizing a market value lease. After deducting for operating expenses and vacancies a projected net operating income can be calculated. This net operating income is then capitalized to arrive at a value estimate.
- Cost Approach involves estimating the value to replace (or reproduce) the subject improvements, less any depreciation and adding the value of the land as vacant.
Not all residential and commercial real estate appraisal reports utilize all three of the approaches to value. Typically, the Direct Comparison and Income Approaches are utilized in most commercial appraisal reports; whereas, the Cost Approach is typically applied to unique properties or brand new (or recently constructed) properties.
To request a quote or for more information call Katherine at 780.993.3094 or email at: kat@ebprime.com.