TOP 10 REASONS
10 REASONS TO USE AN APPRAISER WITH THE CRA
Knowing the value of real estate is critical today. Reduce your
liability and be assured of reliable real estate appraisal by using
professional real estate appraisers with designations from the
Appraisal Institute of Canada.
INDEPENDENT, OBJECTIVE VALUATION
The CRA is required to provide a completely objective
opinion of value, independent of any other business interests.
SOLID PROFESSIONAL TRAINING
Designations are earned after completion of an academic program of
studies from an approved college or university and articling under a
practicing professional appraiser and completion of demonstration
PROVEN VALUATION EXPERIENCE
Institute designated members earn their designation after
demonstrated supervised appraisal experience in the market.
Appraisers with Institute designations are committed to a career in
the appraisal profession.
ONGOING PROFESSIONAL DEVELOPMENT
The Institute has a program of mandatory recertification of its
designations - that means members are current and prepared.
There is no legislation governing the practice of real estate
appraisal. The Appraisal Institute governs its members through a
strict Code of Ethics and Standards of Professional Practice.
Members who do not follow the rules are disciplined up to and
ONGOING PARTNERSHIP WITH LENDERS
Appraisal Institute regularly meets with representative from
Canada's lenders and bodies such as the Canada Deposit Insurance
Corporation and CMHC to discuss industry concerns.
The Appraisal Institute is committed to protecting the pubic
interest; that is why programs such as the Liability Insurance have
Appraisals done by designated Institute members are accepted not
only by Canadian lenders but also by judicial and regulatory bodies,
for purposes of divorce and arbitration, among others.
A HISTORY OF COMMITMENT
Appraisal Institute designations represent more than 50 years of
commitment to real estate appraisal as a profession.
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 containing family housing units.
THE VALUE OF A REAL ESTATE APPRAISAL
Real Estate is Complex Form of Investment.
Unlike the stock market, for example, 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. In addition, 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 an
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 then 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
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
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.
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
The appraiser will use any or all of these approaches to value as is