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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 reliable real estate appraisal by using professional real estate
appraisers with designations from the Appraisal Institute of Canada.

HERE'S WHY:

INDEPENDENT, OBJECTIVE VALUATION
The AACI or 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 appraisal reports.

PROVEN VALUATION EXPERIENCE
Institute designated members earn their designation after demonstrated
supervised appraisal experience in the market.

CAREER COMMITMENT
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.

SELF REGULATION
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 including expulsion.

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.

PUBLIC INTEREST
The Appraisal Institute is committed to protecting the pubic interest; that is
why programs such as the Liability Insurance have been developed.

UNIVERSAL ACCEPTABILITY
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.

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 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 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