Buying and selling property involves large
amounts of money. Whether you are buying a house,
an office building, land in the country, or
any other kind of property, you want to be sure
you aren’t paying too much. On the other
hand, if you are selling, you want to make sure
you get what your property is worth.
Determining the value of a piece of property
can be complicated, however, as it depends on
many factors, such as location, the quality
of the building, development potential, and
fluctuations in the market. Buyers and sellers
hire real estate appraisers to inspect properties
and offer unbiased estimates of their market
value.
Real estate appraisers are called in whenever
property is bought, sold, mortgaged, or condemned.
For example, a bank would need to know the value
of a house before granting a mortgage loan.
Appraisals are also needed by local governments
in order to set tax rates
What does an appraiser do?
As an appraiser, you may be called upon to
provide a professional opinion or consultative
valuation services on:
• current value of property being bought
or sold
• future value of property being built
• value for mortgage or lending purposes
• value to assist in investment decisions
• value to measure property tax assessments,
capital gains and other taxes
• verification of damage claims resulting
from fire, rain, hail, windstorms and other
disasters
• value of property to determine compensation
where property is to be expropriated
• value of property involved in litigation
Recognized Areas of Applied Experience
When related to real estate and the list of
First Principles, the following Areas of Applied
Experience qualify under the Applied Experience
Program:
All areas of valuation
Negotiation
Due Diligence
Arbitration/ Alternative Dispute Resolution
Project Management
Strategic Advice
Appraisal Review
Feasibility Highest and Best Use Studies
Expropriation
Lease Administration
Native Land Claims
Financing
Management of Valuation Related Organizations
Consulting
Professional Liability /Appraisals/ Litigation
(insurance)
Site Selection Analysis
Environmental Specialization
Research
Land Agency
Property Management
Land Use Planning
Property Development
Quantity Surveying
Land Surveying
Accounting
Engineering
Law
Right-of-Way Agents
Forestry
Litigation
Security Issues
Property Sales
When hiring an appraiser, what types of
questions should I ask?
• You may find the following questions helpful
in your search for a suitable appraiser:
• What professional designations do you have
and from what organizations?
• How long have you been in practice?
• What level of experience do you have in
this particular market and with this type of property?
• Are you familiar with property in this neighborhood?
• What types of clients have you had (homeowners,
estates, lenders, relocation companies)?
Why should I hire a member of appraisal
institute of Canada?
Members who hold the AIC designations of AACI,
P.App or CRA have met rigorous educational &
experience requirements. They adhere to strict
standards of professional appraisal practice and
ethics. All members are required to participate
in continuing education programs – making
them the preferred choice for high quality appraisal
services.
How much will an appraisal cost?
The appraiser will suggest an appropriate fee
based on the anticipated work involved in the
project. The fee will depend on the complexity
of the assignment, the appraiser’s expertise,
knowledge and reputation. The cost of an appraisal
is relatively small in relation to the overall
cost of your investment.
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