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Most
people consider themselves knowledgeable with regards to property
values. By either selling or purchasing a house, or simply by
owning real estate, they have formed an opinion of value. Usually,
however, this opinion is subjective. An independent real estate
appraiser is a specialist who writes objective reports dealing
with estimates of market value. The appraiser does not set,
determine, or establish value. A careful inspection of the property
is made. The present sales market is utilized along with historical
sales evidences, market trends are analyzed and interpreted,
all concluding with an estimate of the most probable selling
price of the property. A real estate appraiser deals with facts
and applies these facts to a uniform methodology which will,
through the application of one or more approaches to value,
result in an appraiser's objective opinion of market value.
When you buy your home, for example,
the lender will often call for a property appraisal. This
is to assure the lender that the value of the property is
sufficient to cover the mortgage loan in the event the borrower
defaults. Most real estate appraisers are affiliated with
the Appraisal Institute of Canada, which is dedicated to high
professional standards in the analysis and evaluation of real
property. There are more than 6,300 members in Canada. The
Institute grants two professional designations AACI and CRA,
each requiring a rigorous course of study, together with appropriate
articling experience. The latter, Canadian Residential Appraiser
allows members to perform the evaluation of undeveloped residential
sites and dwellings containing not more than four self- contained
residential housing units.
The AACI is an unrestricted designation,
with members being only limited by their experience and field
of expertise. All members are required to participate in the
Institute's Mandatory Recertification Program. All members
are subject to a rigorously enforced Uniform Standards of
Professional Appraisal Practice (USPAP), and must carry liability
insurance. Appraisers are called on by lawyers, mortgage lenders,
all levels of government and private individuals when a third-person,
accurate estimate of property value is needed. Appraisers
can provide historical values for such purposes as Capital
gains.
Appraisers must keep up to date on
trends, property taxes, special assessments and other variables
which may affect value. Ask a qualified appraiser about his
or her experience and ability to meet your needs?
Copyright © 2004 Reliance
Appraisals
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