Archive for the 'Appraisal Technology' Category

January 14, 2019

When it comes to determining property valuation, many of today’s real estate professionals are turning to online tools.

It makes sense. Online property value technology is faster and more convenient than a full appraisal. (Note: online property valuation is a nice complement to an appraisal but shouldn’t replace an appraisal entirely.)

Depending on the information source, online technology can be extremely accurate and provide you with an abundance of information at the click of a finger.

But as online evaluations grow, so too do the tools available for the task. What property evaluation technology is best to use? We turned to the reviews for what users had to say.

  1. MPAC Assessment

The Municipal Property Assessment Corporation determines property assessments for municipal tax purposes. It can be useful for real estate professionals determining a property’s value.

That said, MPAC has its limitations. For instance, the tax value can be very different from the appraised value.

“Many clients look at the Assessed Value (which is often publicly available online on your municipality’s website) and assume that the number provided represents the current market value,” wrote Calvert Home Mortgage Investment Corporation.

“While there are a few instances where the Assessment might equal the current value, it is important to understand that this would only be a coincidence as both values are unique and are done for different purposes at different times.”

The definition of market value can assume a hypothetical and perfect market — not taking into account fluctuations or extenuating circumstances.

The Bottom Line: While MPAC can be a good tool in your property value wheelhouse, it shouldn’t be the only tool that you rely on.

  1. emili

emili is the Canada Mortgage and Housing Corporation (CMHC) decision system for mortgage insurance. It can automatically consider key factors such as the borrower, the property, the market, and the overall risk.

There is one thing that is important to know. If you are using property valuation tools to comply with mortgage stress testing, unfortunately emili is not enough.

emili does not provide a value for a property being financed. Instead it evaluates an area and, based on the value in that area, agrees or disagrees with the value stated on the application. This means that when emili agrees or disagrees with a value, you are not actually obtaining the value of the specific property being financed.

The Bottom Line: While emili has its uses, it shouldn’t be your only online property valuation tool.

  1. ca/MLS

Realtor.ca – the former Multiple Listing Services — is a well-known listing advertising site. But that is where it’s limited. It does not display historical or sold data.

According to reviewers, Realtor.ca:

  • Has limited search functions.
  • Doesn’t always show the newest listings.
  • Isn’t always up to date – some of the listings may have already sold or sold conditionally.
  • Shares incomplete listing info. Public listings don’t include property taxes, number of days on the market, and more.

The Bottom Line: Realtor.ca continues to be a good tool for advertising listings and real estate marketing, but it shouldn’t be used as a property valuation tool. For one thing, it doesn’t always show the most complete listing data. But for another, it is limited. You can only find properties currently on the market — you can’t search for properties that are not yet listed.

  1. GeoWarehouse

GeoWarehouse is Teranet’s property valuation solution, powered by the Province of Ontario Land Registration Information System (POLARIS).

We have worked hard to create a database that is accessible, comprehensive, accurate, and up-to-date. But don’t just take our word for it. Here’s what others have to say:

Elle Peterson, Sales Representative, Kenora Home and Cottage Realty Inc.

“I have found that the GeoWarehouse reports have helped me to be successful in real estate by using the neighborhood sales report when showing clients recent sales in their area.

“GeoWarehouse reports have been helpful in providing the survey of the land and in identifying neighboring lots, as well as in getting particulars on these lots such as who owns them. This is valuable to a buyer, so he/she will know in advance who their neighbour would be. It also helps a seller to have an idea of property lot lines in the event there is no survey.

“I have had success with clients in using the GeoWarehouse reports, specifically the property details to show the particulars of a property including the legal description and how much the property sold for and when it last sold.”

Asghar Jafri

“GeoWarehouse’s map is up to date and it helped me find the location easily. I could not find the same location in TREB’s maps.

“I was able to get a comparables report easily. The report gave me a quick list which I used to hone in on the best comparables.”

Brian Wilson, Broker of Record – GlobeCorp Realty, Brokerage

“I use GeoWarehouse regularly to help me in preparing valuation reports for my clients, both buyers and sellers. It is an invaluable piece of the pie in helping to determine what properties in the area have sold for and helps to form a better picture for my clients about the value of their property (or prospective property). GeoWarehouse has enabled me to provide a higher level of service to my clients, and as such I’m seen as a better educated service provider (REALTOR). Thanks to the GeoWarehouse team!”

Gail Johnson, Sales Representative – Prudential Town Centre Realty Inc., Brokerage

“Your GeoWarehouse on-line course says it all. GeoWarehouse makes my job easier because the database is:

1- Convenient – access the system, with varying degrees of support, for up to 24 hours a day 7 days a week.

2- Timely – Title Data contained in the GeoWarehouse database is current to within 2 to 3 weeks and Parcel Registers are delivered directly from the POLARIS database.

3- Flexible – you can search records by Owner Name, Address, Instrument or PIN or search aerial maps; and

4- Reliable – data is derived from the POLARIS database.”

See more reviews of our GeoWarehouse system here: https://www2.geowarehouse.ca/testimonials/

If you would like to try GeoWarehouse for yourself, get in contact today. We’ll walk you through the features and explain exactly how it all works to help you determine the most accurate property value available.

Call 1-866-237-5937 or visit www.geowarehouse.ca.

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It can be a real estate agent’s nightmare. You’ve taken the time to arrange a great deal for your client who is selling their home… but then they can’t pay you the commission.

Suddenly, you’re out money and time. You could take the client to court to try to recoup the costs, but again that is more money and more time.

Wouldn’t it be easier to just make sure your client is able to pay in the first place?

That’s where this one secret comes in. You will want to be sure this is included in your real estate tool case.

It’s called a Parcel Register*.

A Parcel Register* from GeoWarehouse is like a credit report — but instead of checking a client’s credit score, it checks the property.

It will show you:

  • If any encumbrances exist.
  • The lender the encumbrances are with.
  • When the encumbrances were registered.
  • The registration value of any encumbrances.
  • The legal homeowners and the type of ownership.
  • A history of registered mortgages and liens.
  • And more.

With this tool, you’ll be able to find out from the get-go whether or not the client can pay you and if there is enough equity available in the home for it to be worth your while.

This is vital in today’s changing economy when interest rates are rising, and new mortgage rules are in place. Federally-regulated lenders have to take into account the client’s gross debt service (GDS) ratio — all of the housing related debt they carry — and total debt service (TDS) ratio — the total amount of debt they carry.

However, private lenders that are not federally regulated do not have to do this. So, it could be possible for a client to be securing their mortgage privately and struggling with debt — and you may not find out until it is too late.

That is why it’s always a good idea to get a Parcel Register*. You’ll be able to know more sooner and rest easy knowing that the deal will go through uninterrupted and you’ll be able to get your real estate commission.

A GeoWarehouse Parcel Register* is easy to obtain. Find out more today. Call 1-866-237-5937 or visit www.geowarehouse.ca.

* An official product of the Ontario government pursuant to provincial land registration statutes.

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November 23, 2018

The Canadian real estate market is in a state of fluctuation, which can make determining a listing price difficult to say the least.

Between rising interest rates, mortgage stress testing regulations, uncertain house prices, increased competition, and the like, there are many factors that might be affecting your usual process for determining property value.

That said, there are several practices that you can use to set a listing price no matter what is happening in the Canadian housing market. Here are our top picks.

  1. Assess the Property Details

This is step number one because it should be on your list regardless of market conditions. You need to understand the property details. For instance, what year was the home built? What data is included in the Land Registry?

In order to start thinking about your listing price, you need to know the answers to these questions and more.

  1. Get an AVM

You may have considered getting an appraisal done — this can be a great idea. But have you thought about an automated valuation model (AVM) report as well?

An AVM report can confirm home value, ownership, and other details quickly and efficiently. It can estimate property value by comparing and analyzing property characteristics against public record data.  It doesn’t replace an appraisal, but it is a good companion to one.

While an AVM can’t review interior and exterior property conditions, some include street view imagery that can help identify issues with exterior conditions, such as property boundary discrepancies. It’s great to leverage automation and historical data analysis to generate the latest information on pricing and ownership and create a big picture report.

  1. Consider the MPAC Assessment

MPAC is the largest assessment jurisdiction in North America. It determines revenue requirements, municipal tax rates, and property tax collection for the Government of Ontario.

An MPAC assessment isn’t always the same as a property appraisal, and often listing prices are different from MPAC’s valuation. That said, it is still valuable information that can be used in your determination.

  1. View the Sales History

Along with the property details, you will also want to consider the sales history. While today’s market may be very different from the last time this house sold (particularly if it is an older home), that data is still important to review.

  1. Look Up Comparable Sales

One of the best ways to determine home value is to see how comparable properties are selling. You can get a real-time view of what similar houses have sold for and use that to set your listing price.

You can also narrow your search by neighbourhood to specifically understand the area where you are selling. Certain regions will be more desirable based on factors like school proximity, parks, shopping areas, and the like. This will stay in style even with a market shift.

  1. Use a House Price Index

The Teranet-National Bank House Price Index is released every month with up-to-date information on house prices across Canada. This digs into 11 different markets and the house price trends those regions are experiencing.

This is important for you to know when making your assessment.

  1. Examine Market Insights

In a shifting real estate market, you want to stay on top of the latest real estate trends. For instance, if you know that condos are some of the most popular dwelling types for millennials, and you are trying to set a listing price for a condo in an area that appeals to millennials, that will help make your decision.

The Teranet Market Insights Report is released regularly and contains data that you can use for your property valuation needs.

While it may be simpler to set listing prices during non-turbulent housing market conditions, it’s still possible to do so in more uncertain times. Be sure to do your due diligence and assess information from multiple sources. Trends can change so fast that you need to stay on top of the data.

Luckily, GeoWarehouse makes it easy to stay informed up-to-the-minute. Our property reports take data from the Province of Ontario Land Registration Information System (POLARIS), so you can trust the reports you receive are accurate and timely. They are also available almost instantly, so you can make a decision with the latest figures.

Learn all about our GeoWarehouse reports today. Call 1-866-237-5937 or visit www.geowarehouse.ca.

Want more information on determining a listing price? Download our free eBook, Digital Property Evaluation in 1-2-3! Get your copy here: http://www2.geowarehouse.ca/property-evaluation-general/.

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Real estate appraisers, developers, and contractors, how do you determine property valuation?

Traditional property valuation and even automated valuation models (AVMs) have historically been geared towards estimating property value, but the digital property valuation of today is so much more.

Our FREE new eBook will walk you through how you can leverage technology to perform a digital property evaluation and reap all the valuable information therein.

This is eBook is perfect for anyone who regularly relies on unique property information, such as a sales history, property ownership information, or home appraisals.

In this eBook, you’ll learn:

  • What a digital property evaluation should include.
  • The critical components to success.
  • Ways to locate and ways to investigate a property.

By the time you’re done reading, you’ll know exactly how to use property data to both investigate properties and identify new opportunities.

This eBook is available today for free. Just click here to get started downloading.

GeoWarehouse is your source for property searches and more. All of our data comes from the Province of Ontario Land Registry Information System, meaning that it’s accurate, up-to-date, and available when you need it.

Learn more about our digital property valuation tools today. Contact John Singh at 416-360-8863 ext. 2557 or email john.singh@teranet.ca.

 

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July 9, 2018

Use Appraisal Technology to Boost Your Business

Do you want to become the “Agile Appraiser?” Besides sounding like a superhero name, increasing your appraisal agility will help you work faster, adapt to changes, and boost your client appeal. The secret doesn’t lie in a red cape or a radioactive spider bite, though — instead, it’s in your appraisal technology.

Real estate tools are enabling home appraisers to approach their profession and automate their workflows like never before. With streamlined tools, easy searches, and instant results, you can do more from your desk. Multi-property search functionality makes finding the data you need easier than ever.

According to Canadian Property Valuation Magazine, when they’re relevant to the appraisal, a desktop review can dramatically increase production rates (valuations/reviews per day). Most jurisdictions conducting a desktop review can complete it in approximately 10 minutes, whereas a site visit can take approximately 40 minutes, not including travel. This can allow you to spend more time in analysis, rather than building the data.

Don’t wait to get started. Want to become the “Agile Appraiser?” Here are the tools that will get you there:

  1. Access Property Details Virtually

Appraisal technology like the GeoWarehouse Property Details Report lets you access gives you valuable Land Registry information, MPAC Assessment data, property ownership information, sales history, images, and more. Plus, it’s completely customizable. Use this when determining a property’s market value — all the information you need in one place.

  1. 3D Virtual Property Tours

In many cases, you can view a property without ever stepping foot on it. StreetScape and PivotView Imagery lets you virtually “walk” around a property, even peering around corners. With crisp, clear images that can rotate 180 degrees, you can get a good overview of the site without leaving your desk.

  1. Surveys and Plans at the Click of a Button

Property surveys and plans can oftentimes be accessed online. Data includes legal boundaries, easements, encroachments, and rights of way, plus the location of physical buildings and structures and their dimensions. In our GeoWarehouse store you can access reference plans, subdivision plans, and condominium plans.

If you’re looking to increase your appraisal agility, you need high-quality, accurate, and dependable data. That’s where GeoWarehouse comes in. Our reports are easy to access, up-to-date, and most download instantly.

Find out how to become a GeoWarehouse subscriber today to access our appraisal technology. Visit www.geowarehouse.ca for more information.

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