What Appraisers Do
AIC Designated Members play an important role in the real property market by providing unbiased appraisal, review, consulting, reserve fund planning, machinery and equipment and mass appraisal valuations.
Their opinions of market value are based on comprehensive research and analysis and are critical to the decision-making process of property owners, businesses, investors, governments and other professionals during real property portfolio planning and transactions.
If it involves real estate, involve an AIC-designated appraiser!
AIC’s Real Estate Designations
The AIC grants two professional designations—the Accredited Appraiser Canadian Institute (AACI™) and the Canadian Residential Appraiser (CRA™).
AACI—qualified to undertake any valuation and consulting assignment on residential, commercial, industrial, institutional, agricultural, land and special use property types.
CRA—qualified to undertake any valuation and consulting assignment on dwellings containing not more than four self-contained family housing units or on individual undeveloped residential dwelling sites.
Each designation is a guarantee of quality, knowledge and professionalism. Furthermore, AIC designations are recognized as experts within judicial and quasi-judicial settings.
AIC Designated Members complete AIC’s Program of Professional Study, which includes university-based education delivered in partnership with the University of British Columbia and Université Laval. They are also required to successfully complete an applied experience program and examination as well as a professional competency interview, and must hold a degree from a recognized Canadian university in order to become designed with AACI™ or CRA™.
The Benefit of Hiring an AIC Member
An AIC-designated appraiser is engaged when a property owner needs an expert, unbiased opinion on the value of real estate to make a well-informed decision about real estate. They are involved in:
- Renovating or building
- Buying or selling property
- Financing or refinancing property
- Making real estate investment decisions
- Reviewing property tax assessments
- Assessing capital gains
- Making a claim for insurance purposes
- Determining or facing expropriation compensation
- Valuing property for matrimonial purposes, arbitration or other litigious matters
- Business mergers, acquisitions or dissolutions involving real estate
- Reporting on property values to meet International Financial Reporting Standards (IFRS)
- Completing reserve fund studies or depreciation reports for condominium/strata property
- Valuing machinery and equipment
- Completing mass appraisals
- Residential—single-family homes, multi-units, recreational, heritage, etc.
- Commercial—office buildings, retail, hotels, storage facilities and other income-based properties
- Industrial—manufacturing, machine shops, etc.
- Institutional—hospitals, schools, churches, publicly-owned property, etc.
- Mining/resource-based—oil and gas, timberland, sand pits, pulp and paper, etc.
- Rural—agricultural, land, winery, orchards, etc.
- Special uses—airports, golf courses, contaminated property, harbor, military facilities, prisons, etc.
- Personal property—furniture, tools, tanks, technology, automotive, aircraft, motors, etc.
Many AIC-designated appraisers offer specialized real estate knowledge, such as:
- Arbitration and negotiation
- Expert testimony and litigation support
- Cost-benefit analysis
- Feasibility studies
- Highest and best use
- Insurance and replacement cost
- Relocation valuation
- Market analysis and market rent studies
- Reserve fund studies
- Asset/portfolio management
- Right of way, easement, partial takings
- Tax assessment appeals
- First Nation land claims
- Machinery and equipment valuation
Several methodologies are used by AIC-designated appraisers, depending on the scope of the assignment and the property type.
- Direct Comparison Approach: a methodology whereby the appraiser develops an opinion of value by analyzing completed sales, listings or pending sales of properties that are similar to the subject property.
- Cost Approach: a methodology that considers the land and building components separately and reaches a value conclusion by adding these estimates together. Like the Direct Comparison Approach, the Cost Approach is based on a comparison of the cost to replace the subject (cost new) or the cost to reproduce the subject (substitute property). The cost is reduced by the accrued depreciation (i.e. physical wear and tear, functional deficiencies and external influences) of the dwelling and the site improvements (i.e. garage, deck, pool, etc.). The Cost Approach is more reliable when a property is newer due to the lower depreciation.
- Income Approach: a methodology that is used to determine the valuations of income-producing properties. Typically purchased as investments, the earning potential is an important element affecting the value of these properties. Through the Income Approach, the appraiser analyzes a property’s revenue and expenses to convert the income into a present value. This methodology is typically not applied when valuing a residential property.
AIC-designated appraisers assess the type of property being appraised and the complexity, nature and scope of the assignment when determining the type of report to complete for their clients. Three types of reports are generally used:
- Form reports are more commonly used for completing appraisal reports on residential properties.
- Short narrative reports are used to provide concise information and set out the key salient facts and conclusions of an assignment.
- Full narrative reports are used when a client needs greater detail, research and conclusions.
PROFESSIONAL LIABILITY INSURANCE PROGRAM
AIC has a mandatory Professional Liability Insurance Program, offering high quality errors and omissions coverage for all members. The Insurance Program offers a broad-based policy that provides coverage for appraisal work as defined by AIC’s Standards (CUSPAP). The program provides dedicated, professional insurance services to members, directly related to the claims experience of the profession.
Provider: Trisura Guarantee Insurance Company
Represented by: HUB International (the insurance brokerage firm representing the Members of the Appraisal Institute of Canada)
WHAT IS COVERED?
All members in good standing are covered for the professional appraisal services that they are qualified to provide. The AIC Insurance Policy provides members with comprehensive protection of:
- liability coverage with a limit of $2.0 million (per occurrence/aggregate per year)
- legal and defense costs
Network security and privacy risks have become an increasing concern for businesses today. The COVID-19 pandemic and resulting switch to remote work have ramped up cyber threats to a level previously unseen.
In 2017 AIC introduced a coverage enhancement to help prepare appraisers for the complexities and nuances of data security. The insurance programs now includes Privacy and Security Breach Services Coverage which has been made a part of the coverage for all members.
AIC MEMBER INSURANCE PORTAL
Members can access the AIC Insurance Program web-portal by logging in to their account on the Trisura Portal here: https://secure.trisura.com/aic/login.aspx?AspxAutoDetectCookieSupport=1
Please have your log-in email and password ready.
Consult the AIC Member Portal for any technical difficulties or questions about your account.