 
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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