What is an Appraisal?
An appraisal is a legal document prepared by a qualified, designated appraiser estimating the value of real property. Typically an appraisal will estimate the current Market Value of real property. Objective and dependable valuations are critical to the decision-making processes of individuals, lenders, lawyers, businesses, and governments. Appraisals can range from form documents for residential properties to extensive narrative reports for commercial properties. The Metrix Realty Group team comprises designated real estate appraisal professionals who play a direct and vital role in the real estate sector.
Why do I need an Appraisal?
There are many reasons to get an appraisal. An appraisal is the foundation upon which informed decisions about real estate are made. Clients typically seek out a professional appraiser for an opinion on:
• Current Market value of property for purchase of sale
• Future market value of property being built
• Mortgage or lending purposes
• Assist in investment decisions
• Property tax assessment appeals
• Insurance claim purposes
• Value of property to determine compensation where all or part of the property is expropriated
• Value of property involved in litigation
• Value of property as it affects pending business mergers or dissolution
• Additional services include feasibility analysis and other consulting services such as market rental studies, highest and best use analysis, or appraisal review
Who should order an Appraisal?
For home appraisals, lenders typically order the appraisal internally to an appraisal management company. However, they will often accept an appraisal by the borrower. Should you decide to obtain your own appraisal, check with your bank or broker to ensure the appraiser is on the lender’s approved list and the appropriate procedures are followed. For commercial properties, your lender will often provide you with a list from the Bank’s approved appraiser list. Appraisals completed by firms not on a banks’ approved list may not be accepted. Please consult with your lender.
What qualifications do appraisers need?
Real estate appraisers in Canada are designated through the Appraisal Institute of Canada (AIC), and are trained to provide objective, knowledgable, independent valuation estimates. Each member of our team is an accredited member, or candidate member of the AIC, the largest nationally recognized appraisal organization.
The AIC is the leading real property valuation association with over 5,000 members across Canada and around the world. Established in 1938, the AIC works collaboratively with its 10 provincial affiliated associations to grant the distinguished Accredited Appraiser Canadian Institute (AACI™) and Canadian Residential Appraiser (CRA™) designations. The AIC is a self-regulating organization that is guided by a Code of Conduct and Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP) to ensure that our members:
• Maintain the highest level of integrity and professionalism;
• Engage in conduct that will instill confidence and protect the public interest;
• Provide quality services within their areas of competence; and,
• Commit themselves to principles that reflect high standards of professionalism.
The AACI designation is the full accredited membership in the AIC permitting the designated member to appraise all types of real estate. The CRA designation permits designated members to appraise individual residential dwellings containing not more than four, self-contained family housing units.
What is the difference between a Realtor’s valuation and an Appraiser’s?
Appraiser’s provide objective opinions of value, and are regulated through the Appraisal Institute of Canada’s Uniform Standards of Professional Appraisal Practice (CUSPAP)
Realtor valuations are not typically recognized by Canada’s lending institutions, and are an opinion of value estimated generally for the purpose of establishing an appropriate listing price to market your property. Listing prices and market values can often differ.
*Can’t find the answer to your question? Contact a team member at Metrix Realty Group and they can assist with answering any of your questions.