14

What do I need to do to prepare for the appraisal inspection?

Write a list of improvements, additions or renovations you have completed in the last few years. We will need access to all rooms in the building(s) including your mechanical systems. If you have your tax bill available, it can verify the correct spelling of your name, street address and legal description of your property.

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If you have a large agricultural property, have a list of the parcels, their sizes, and which are improved with buildings or other structures.

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If we are appraising a leased property or a hospitality property, we will require copies of all leases and financial information including all revenues and expenses.

15

What is the "Date of Valuation?"

When producing their reports, appraisers must determine an appropriate date of valuation. While this may sound straightforward, in reality, the date of valuation can be a nuanced detail that shapes the entire appraisal. A property's value can be appraised as of the date of inspection or the appraiser can establish either a retrospective or prospective date depending on their client's needs.

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With a retrospective date of valuation, an appraiser seeks to estimate the value of a property for a past date. This is most commonly used in estate settlements, tax appeals, division of matrimonial assets or partner disputes. In these situations, the clients may require to know the value of a property at a prior date for legal

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A prospective date of valuation assesses the value of a property at a future date. This is predominantly used in cases where there are proposed construction or improvement projects involved. In these instances, borrowers may seek additional funding for property improvements, prompting lenders to request a prospective appraisal that will estimate the future value of the property. With prospective valuations, appraisers must assume that the work will be done in a professional manner; ensuring the value will indeed be added to the property.