Appraisal Requirements

The following requirements apply to EVERY appraisal that is submitted to HomeEquity Bank.

HOMEEQUITY BANK APPRAISAL REQUIREMENTS EFFECTIVE JUNE 2016

PLEASE REVIEW CAREFULLY AS SOME OF OUR REQUIREMENTS HAVE CHANGED.

**For Bank Regulatory purposes the cost of the appraisal is to be included in the report or a copy of the invoice/receipt provided to the applicant is to be submitted along with the report.**

Please do not proceed if any of the following applies:

• The client cannot provide payment at the time of inspection and another payment arrangement has not been pre-arranged.
• There is an underground oil tank.
• The subject property is located in a Flood Fringe, Zone or Plain.
• The property is zoned Commercial. (HomeEquity Bank will consider homes zoned as commercial/residential).
• Any of the rooms cannot be inspected. All rooms must be viewed.
• Properties under construction not at least 97% complete.

The following applies to ALL files:

• All appraisals must be done on the Appraisal Institute of Canada, Residential Appraisal Report format and submitted electronically as a single PDF file.  (refer to www.aciweb.com for more information regarding this format)
• Pictures are required of both front and rear of the property along with a street scene.
• All rooms in the house must be viewed and accessed.
• Interior photos of all rooms (including those in the basement) to be provided.
• The final value must only be attributed to the house, basic garage (if applicable) and up to a maximum of 10 acres of land (see “Acreage” section).
• Do not include the value of any outbuildings such as sheds or guest homes.
• The interior of all outbuildings must be inspected and photos provided.
• Legal description.
• Lot and Site sizes: All measurements must be reported in imperial units, including lot size (frontage and depth).
• Electrical amperage (breakers/fuses).
• Age of roof/material. If almost at life expectancy, further comments are required.
• The cost approach is required on all reports with the exception of condominium/strata properties.
• Percentage complete – Construction must be at least 97% complete.
• Sales history – Comment on known agreements for sale, prior sales or listings in the last year.
• If the home has “UFFI”, please indicate such but you may proceed with appraising the property.
• Structural Integrity (Foundation cracks, water seepage/staining, etc) if evident, additional comments and pictures are required.
• Deferred Maintenance if known, please provide estimated costs associated with scope of work.
• If the property has a High Land Value, further comments are required regarding the contributing factors (i.e. zoning, re-zoning, acreage, future redevelopment potential, etc.).
• Water Source
  • If type is Well: Type of well is required (i.e. drilled, artesian, cistern*, etc.).
  • If type is Lake Intake*: please indicate if there is an Ultraviolet (UV) Filtration System in place.

* If water source is lake intake or cistern, please indicate if it is common for the area and how it impacts marketability.

• Comparables
  • Minimum of 3 comparable sales to be provided.
  • DOM: All comparables must include the total number of days listed on the market. If DOM are excessive please provide an explanation (i.e. over-valued properties, seasonality).
  • Sale Dates: Anything older than six months should be time adjusted or an explanation regarding market conditions is required.
  • No more than one private sale should be used and should not be the most comparable comp to the subject property (where applicable).
  • Include a map showing the location of the comparables in relation to the subject property.
  • Photos of all comparable sales are required.

• Fuel Type ( If Oil)
  • Location: Please indicate the location of the oil tank (inside the home or outside and above or below ground).
  • Please indicate the age of the oil tank. The manufacturing date is stamped on newer oil tanks.

• Acreage
  • If the subject property has acreage, the number of acres must be indicated.
  • Maximum acceptable acreage is 160 acres.
  • If more than 10 acres, the final value must include the home and 10 acres only. Additional acreage and any outbuildings are not to be included in value.
  • If there are any animals/livestock on the property please indicate the type and approximate number.

• Condominiums
  • Please provide the number of units in the subject complex.
  • If the building is subject to any special assessment, details should be included in the Comments.

• Mobile Homes
  • Client must own the land (leased land or rental pads not acceptable).
  • Please provide the; Serial Number, Year, Make and Model of the mobile home if available.
  • Comments are required if the home is on a permanent foundation or not mobile (i.e. tires removed/skirted etc.).
  • Mobile Home Registry number is required in the province of British Columbia.

Incomplete appraisals will not be accepted