Residential AppraisalS

Our Residential Appraisal Team

Our team of residential appraisers are ready to provide the highest quality reports and service to meet your appraisal needs. Each of our appraisers is a member in good standing with the Appraisal Institute of Canada (AIC). The AIC is a self‐regulated property valuation association and provides its members with membership categories, grants designations, regulates the educational requirements for members, and provides for Standards and a Code of Ethics that it’s members must abide by. The membership categories are Student, Candidate, CRA (Canadian Residential Appraiser), and AACI, P. App. (Accredited Appraiser of the Canadian Institute, Professional Appraiser).

Our team comprises AACI, P. App, CRA and Candidate members of the AIC. Any reports completed by a candidate must be co‐signed by a CRA or AACI, P. App. designated reviewer, with the reviewer/candidate relationship registered through the AIC website.

Our Residential Appraisal Standards

The standards that members of the AIC must follow are known as CUSPAP, or the Canadian Uniform Standards of Professional Appraisal Practice. These standards include an Ethical Standard, an Appraisal Standard, a Review Standard, and a Consulting Standard.

The Appraisal Standard includes rules that deal with the minimum content necessary to produce a credible report. These contents include the following 27 items summarized below:

• identify the client and other intended users, by name;
• identify the intended use of the appraiser’s opinions and conclusions;
• identify the purpose of the assignment, including a relevant definition of value;
• identify the scope of work necessary to complete the assignment;
• identify whether the appraisal is current, retrospective, prospective, or an update;
• provide an analysis of reasonable exposure time linked to a market value opinion;
• identify the effective date of the appraiser’s opinions and conclusions;
• identify the date of the report;
• identify the location and characteristics of the property and the interest appraised;
• identify all assumptions and limiting conditions;
• identify any hypothetical conditions (including proposed improvements);
• identify land use controls;
• state the existing use and the use reflected in the appraisal;
• define and resolve the highest and best use;
• describe and analyze all data relevant to the assignment;
• describe and apply the appraisal procedures relevant to the assignment;
• support the reason for the exclusion of any of the usual valuation procedures;
• detail the reasoning supporting the analyses, opinions and conclusions of each valuation approach;
• when developing an opinion of the value of a leased fee or a leasehold estate, analyze the effect on value, if any, of the terms and conditions of the lease(s);
• analyze the effect on value of an assemblage;
• analyze the effect on value of anticipated public or private improvements;
• analyze the effect on value of any personal property;
• analyze any Agreement for Sale, option, or listing of the property;
• analyze any prior sales of the property;
• review and reconcile the data, analyses and conclusions of each valuation approach into a final value estimate;
• report the final value estimate;
• include a signed certification of value.

Of particular note are the requirements to identify all assumptions and limiting conditions and identify any hypothetical conditions (including proposed improvements). A typical scenario that would require an assumption and limiting condition, as well as a hypothetical condition would be the appraisal of a home that is yet to be constructed, but with a request by the client to value the property “as if 100% complete”. The report would be completed with an assumption/hypothetical condition such as...

"As of the date of inspection, the proposed construction had not yet commenced. However, this report is based on the assumption that the property will be developed and completed according to the plans and specifications identified and described herein and that the standard of construction is in accordance with that assumed within the report. The client/reader is specifically cautioned that it should be specifically noted that any significant deviation in respect of style, layout, design or construction standards would invalidate the value conclusions reached in this report. Therefore, we have invoked an extraordinary limitation under the CUSPAP guidelines, as the appraised value is based upon the above referenced assumptions."

Furthermore, for clarity of the effective date of the appraisal, the following may be included...

"In addition, please note that the appraised value represents the "as if 100% complete" value on the effective date of appraisal only, and does not represent a prospective (future) value at a point in time when the construction is in fact complete. The client/reader is cautioned that market conditions may change between the effective date of appraisal and completion date of the construction, and a new or update appraisal is recommended upon completion of construction to confirm the current market value at that time.

For all of your residential appraisal needs, contact Niemi LaPorte & Dowle Appraisals Ltd.