For Mortgage Industry
When does a financial professional engage an AIC Professional Appraiser (P. App.)?
Mortgage brokers, lenders, insurers and others rely on the valuation expertise of AIC-designated appraisers to provide unbiased opinions of value during the mortgage financing and refinancing process. They are also involved in real estate consulting, reviews of appraisals, and pre-sale market value appraisals.
What types of reports can an AIC Professional Appraiser provide?
A Full Appraisal Report. This type of report is the gold standard of all reports. It includes a full exterior and interior of the subject property as well as in depth analysis and research.
A Driveby Report. This type of report is an abbreviated version of the full appraisal report and only includes an exterior viewing of the subject property.
A Desktop Report. This type of report is an abbreviated version of the full appraisal report and does NOT include any type of on-site inspection/viewing.
A Driveby or Desktop Report when prepared for mortgage financing assignments must meet the following criteria:
- it is for first mortgages only
- the property must not be under construction/renovation
- there is recent information on the property (less than 3 years old MLS listing or previously inspected by the appraiser)
- the lender understands it is a limited report with limited liability of $50,000
More information can be found by clicking here.
A Residential Land Appraisal. This type of report provides an opinion of value of a parcel of land.
A Progress Inspection Report. This type of report provides an overview of the progress of a new construction for the purposes of loan advances.
A Market Rent Report. This type of report provide an estimated market rent value of an identifiable subject property.
A Market Rent Consulting Report. This type of report provides an estimated market rent value of what a typical type of property would rent for in a given neighborhood. No subject property is to be identified.
What types of properties can an AIC Professional Appraiser appraise?
AIC-designated appraisers can provide appraisal, review and consulting services for the following property types:
- 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, harbour, military facilities, prisons, etc.
What professional standards do AIC Professional Appraisers follow?
AIC-designated appraisers are highly-trained and trusted professionals who adhere to the highest standards in the field of appraising: the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP). They can even provide expert testimony before judicial and quasi-judicial bodies.
CUSPAP align with European Valuation Standards and International Valuation Standards and are recognized internationally as acceptable standards for property valuation. Seven Standards have been developed to guide the professional practice of AIC members:
- Ethics Standard
- Appraisal Standard
- Review Standard
- Consulting Standard
- Reserve Fund Planning Standard
- Machinery and Equipment
- Mass Appraisal
Do you process or review residential real estate appraisal reports?
Learn Residential Valuation Basics today through this self-guided online course! Click here to register now.
The Benefit of hiring an AIC member
