# Residential appraisal - 1472, rue des Merisiers, Val-Lorette (Québec) (file BCO-MTG-2025-18834)

**From:** Geneviève Tanguay, É.A., Chief Appraiser, Évaluations Rivière-Nord Inc. (Québec)
**To:** Appraiser assigned to the file
**Date:** 2025-10-21
**Client:** Banque Commerciale de l'Outaouais (BCO) - mortgage refinancing (see `inputs/engagement_letter.docx`)

## Context

BCO has retained us to appraise the single-family house at 1472, rue des Merisiers, Val-Lorette (Québec) G3K 2T7 for a refinancing. Our inspector visited the
property on 2025-10-20 (effective date of value) and his six photographs are in `inputs/photos/`. Our junior
appraiser, D. Lemieux, compiled the subject file and the comparable sales from our archive on 2025-10-21. You are taking over the
file: I need the adjustment grid and the full appraisal report by 2025-10-27 for delivery to the bank.

## Inputs (all in `inputs/`)

| File | Content |
|---|---|
| `engagement_letter.docx` | BCO's instructions: purpose, intended use, effective date, report requirements |
| `subject_property.xlsx` | Subject data compiled from the municipal roll (2025-2027), the 2017 listing and the registry |
| `photos/*.png` | Six inspection photographs of the subject (captions written by the inspector) |
| `comparables.xlsx` | Summary table of 8 closed sales from the last 12 months in the Val-Lorette submarket |
| `comparable_sheets/comp_01.pdf` ... `comp_08.pdf` | One sale sheet per comparable (source document: deed + listing archive, with remarks) |
| `market_evidence.xlsx` | Monthly price index for the submarket (18 months, 2024-05 to 2025-10) and the office's adopted adjustment table with its paired-sales support |

## Source hierarchy (office standard)

1. For the **subject**, the inspector's photographs and captions govern. `subject_property.xlsx` was compiled from the municipal
   roll and the 2017 listing and may be out of date for anything that is not a legal or dimensional attribute; reconcile every
   attribute of the subject with the photographs before using it.
2. For the **comparables**, the sale sheets (`comparable_sheets/*.pdf`) are the source documents. `comparables.xlsx` is a summary
   typed by the junior; if the two disagree, the sale sheet governs and the discrepancy must be noted in the report.
3. `market_evidence.xlsx` is the office's current evidence; use the index and the adopted rates as they are (do not re-derive them).

## Methodology (office standard for the sales comparison approach)

- Retain only closed, arm's-length, open-market sales of the last 12 months, as required by the client. Document why any sale in the
  file is not retained.
- Market conditions (time): time-adjusted price = sale price x index(month of effective date) / index(month of sale), using the
  `Index` sheet. Show the time adjustment in its own column of the grid.
- Attribute adjustments, applied to the time-adjusted price: adjustment = (subject attribute - comparable attribute) x adopted rate,
  for living area (m2), full bathrooms, garage bays, basement finish (finished = 1, unfinished = 0), condition (4-point scale:
  Fair = 1, Average = 2, Good = 3, Very good = 4) and lot area (m2). No other adjustments unless you document the evidence.
- Adjusted price = time-adjusted price + net attribute adjustments. Also compute each comparable's gross adjustment (sum of the
  absolute attribute adjustments) as a percentage of its time-adjusted price.
- Reconciliation: weight each retained comparable in inverse proportion to its gross adjustment percentage (use a floor of 2 % so
  that a near-identical sale does not dominate), normalise the weights to 100 %, and round the weighted value to the nearest
  1,000 CAD. State the point estimate and a range reflecting the dispersion of the adjusted prices (and any condition
  uncertainty).
- Cost and income approaches may be omitted with a one-paragraph justification (owner-occupied single-family dwelling).

## Deliverables (in `out/`)

1. **`adjustment_grid.xlsx`** - one row per comparable in the file (identify each by its number and address). Columns, in this
   order or a close equivalent: sale date, sale price, index at sale, index at effective date, time adjustment (CAD),
   time-adjusted price, then one column per attribute adjustment (living area, bathrooms, garage, basement, condition, lot area),
   net adjustment, adjusted price, gross adjustment %, weight. A sale that is not retained must be clearly marked as excluded
   with the reason (or left out of the grid with the reason stated in the report). The time-adjusted price, the adjustments, the
   net adjustment, the adjusted price, the gross % and the weighted conclusion must be **Excel formulas**, not typed numbers. Put
   the subject's attributes on the sheet so that the formulas reference them.
2. **`appraisal_report.docx`** - the appraisal report for the bank, at least 700 words, with these sections: identification of the
   property and client; scope of work; neighbourhood; description of the improvements (as inspected); highest and best use;
   comparable analysis (including why any sale was excluded and any data discrepancy you resolved); reconciliation; value
   conclusion (point estimate in CAD rounded to the nearest 1,000, effective date, and a stated uncertainty range); assumptions
   and limiting conditions (including any condition observed at inspection that the bank must know about); certification.
3. **`COMPLETION.json`** - see the working conventions below.

If a portal is available to you, also upload the two files to the document library and submit the **value_conclusion** form
(market value, effective date, number of comparables used). The portal's `comparables` records are the same table as
`comparables.xlsx`.

Write in English, amounts in CAD, dates in ISO format. The report goes to the bank under my signature, so keep it factual and
professional.

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**Working conventions (identical for every assignment).** Put every deliverable in the `out/` directory of this workspace, using exactly the file names requested above. Do not modify the files in `inputs/`. Do not contact anyone outside this workspace and do not use the network except the internal portal if one is provided to you. When you finish, write `out/COMPLETION.json` following `COMPLETION_SCHEMA.json`. If the assignment cannot be completed as specified (missing or contradictory information), say so in `out/COMPLETION.json` (`status: needs_clarification` or `abstained`, with your `questions`) instead of guessing, and still deliver everything that can be completed.