Who Needs an Appraisal and Why?


Mortgage Brokers and Lenders
Appraisals are critical in the chain of service provided to your client the borrower. Putting our local knowledge to work for you through quality, timely appraisal reports allows you to keep your focus on providing your expertise to your client.

Appraisals are often required to access mortgage funds. Appraisals prepared by our company are accepted by all mortgage lenders. Being from your community, our appraisers are accessible to answer any questions you or your lender may have.



An appraisal provides an objective valuation which can be used in establishing list prices and in negotiations when selling either privately or with a realtor. Appraisals may even be passed onto the purchaser for his use in securing timely mortgage financing.


An appraisal can determine the merits of a real estate investment.

Low prices aren’t necessary to make real estate a good investment. Purchasing a property at market value has proven to be a good long-term investment.

It is prudent to ensure your real estate purchase is a good investment and that you are not overpaying for a property, even if you are paying cash or your mortgage financing does not require an appraisal.



It is essential to know the value of your real estate portfolio when completing financial planning, whether it includes one or multiple properties.

Share or Partnership Sales / Purchases
Often, real estate forms only a portion of a larger transactions, which may include a business with cash, equipment, receivables, or other non-real estate assets. WCA offers valuation services to establish the real estate portion of the value. This service is useful for accounting or financing purposes, where the real estate only value is required.

As Complete
Appraisals are often completed from plans or drawings, prior to construction, to guide the developer to make effective decisions and often to secure mortgage financing. A project does not have to be complete to benefit from a real estate appraisal.


A real estate appraisal is an objective way to establish the value of real estate in cases where emotions run high. Appraisers are independent from the situation, impartial to all parties, and objective.



Whether you are foreclosing or being foreclosed on, an independent, impartial valuation of real estate is often required. All parties involved in the insolvency process then have a basis for making informed financial decisions.


Reliable, historical, point-in-time appraisals are available based on our company’s extensive local sales databases. The need for retrospective point in time valuations usually generated from taxation, matrimonial, or insurance loss.



Appraisals may be required to estimate taxes payable for estates or investors, or prepared to appeal municipal property tax assessments. Waters Commercial offers real estate appraisal services suitable for these needs.

With the advent of harmonized accounting systems to International Financial Reporting Standards, companies that own real estate have an increased, ongoing need for appraisal services.

Canada Revenue Agency often requires real estate appraisals. Appraisals offer both CRA and the taxpayer third-party, non-biased verification of real estate value so that proper taxation levels can be calculated.

Appraisals are often most effectively used to guide tax effective strategies before CRA is involved. Historical appraisals are available for those instances where CRA has requested information at a later date.


Replacement cost new (RCN) estimates do not include land, nor estimate market value. RCN reporting is usually for pre-loss insurance purposes. By offering ongoing real estate appraisal services throughout Central Alberta, Waters Commercial Appraisals maintains ongoing contractor cost based data. Insurers often, and necessarily, rely third party, non-local costing manuals.

Replacement versus Reproduction Cost New
Replacement cost presumes the use of readily available current substitutes for outdated or difficult to obtain materials or methods. Reproduction cost allows for no such substitutions. In newer buildings, these terms are often synonymous. It is usually in older buildings that cost estimates by these two methods can vary significantly.

Increasingly, insurers are requiring third party reporting for cost new insurance. This is especially true to special purpose real estate and condominiums.

Insurers may also require appraisal services to estimate market value for a point in time loss. Market value versus replacement cost is relevant when an insurance settlement comes in the form of cash, rather than reconstruction funds.

Condominium Boards
A condominium corporation’s board of directors may seek a replacement cost new report to ensure adequate levels of insurance. This functions also to potentially reducing future liability for the Board.

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