10 Reasons to Use an Appraiser with the AACI or CRA Designation

Knowing the value of real estate is critical today. Reduce your liability and be assured of a reliable real estate appraisal by using professional real estate appraisers with designations from the Appraisal Institute of Canada.

Here's why: (hold your mouse over each reason to view more details)
AACI Accredited Appraiser Canadian Institute:
Designates fully accredited membership in the Institute and may be used by the holder in connection with the appraisal of a wide range of real property.

CRA Canadian Residential Appraiser:
Designates individuals qualified in the appraisal and valuation of individual undeveloped residential dwelling sites and dwellings containing not more than four self-contained family housing units.

The Value of a Real Estate Appraisal
Real estate is complex form of investment. Unlike the stock market in which stock units are priced equally and there is an open market for shares, many factors affect real estate values. As well, the market for individual properties is often limited. Every property has characteristics that make it unique, whether it is a home, an apartment building, a farm or a commercial use of land such as industrial, office or retail.

Choose a Professional
The events of recent years have shown that real estate is not always a safe or stable investment. It is important to consult with a qualified, professional real estate appraiser when you need an informed and objective opinion on the value of a property.

Get the facts, and the research to back them up, from a trained professional appraiser who is a member of the Appraisal Institute of Canada.

Appraisal Institute members work both as independent, fee-for-service appraisers and as staff members with public bodies and lending institutions.

Reasons For An Appraisal

There are many situations in which it is vital to know the value of a property:
  • To estimate current equity, or market value for purchase or sale
  • To obtain financing
  • To aid in investment and business decisions
  • To confirm government values in tax and capital gains assessments
  • To estimate value for expropriation compensation
  • To serve as a basis for equitable settlements of estates and property in litigation
  • To estimate value for insurance claims or coverage
Members of the Appraisal Institute of Canada may also provide additional real estate consulting services and expertise such as highest and best use analysis and market research studies.

The Approach to Value

Appraisal practice relies on an established body of knowledge and accepted technical approaches to estimating property value. There are three common methods of valuation.
The Direct Comparison Approach
The value estimate is based on the analysis of selling, listing or offering prices of comparable properties.
The Cost Approach
Based on the depreciated cost of buildings and improvements plus the estimate of land value.
Income Approach
Based on the premise that value is equivalent to the worth of the income stream when a property is developed to its highest and best use.

The appraiser will use any or all of these approaches to value as is appropriate.

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