What is an Appraisal

When you hire an Appraisal Institute of Canada designated appraiser, you are hiring a dedicated professional that will work for you. Your appraiser will provide an objective estimate or opinion of value of the described property, as supported by the presentation of relevant data analysis.

A report contains information relevant to independent property valuation, including the purpose of the appraisal, other qualifying conditions, neighbourhood conditions, property identification, data analysis, the value estimate and the effective date of the appraisal. All reports are also signed and may contain support material such as maps, charts, or photographs.

All reports will demonstrate either one or more of the three basic data-processing methodologies used to arrive at an indication of value:

  • The Cost Approach estimates the cost of building a new property identical to the subject being appraised, based on current prices, and subtracting accumulated depreciation and adding the estimated land value.

  • The Income Approach may be used for income-producing properties and is based on the theory that value is the present worth of the income stream the property is capable of producing when developed to its fullest use. The net operating income from the property is capitalized into value by the appropriate method and rate.

  • The Direct Comparison Approach is based upon the theory that an informed purchaser would pay no more for the property than the cost of acquiring another existing equivalent property. The value estimate is based on the selling price of comparable properties.


The cornerstone of the appraisal profession is knowledge. Designated members of the Appraisal Institute of Canada will put their years of training and knowledge to work for you. Keeping up-to-date with current market trends and legal changes that may affect real estate values, appraisers offer an informed valuation.

Having a complete understanding of real estate value is a critical consideration for making a right decision. Be assured of reliable real estate appraisals by using a designated member of the Appraisal Institute of Canada.

According to CMHC Automated Valuation Models such as CMHC's 'emili' which most banks now use, improve the speed, efficiency and cost effectiveness of the loan application process. They (AVM's) are a risk assessment tool and do not provide an appraisal.

Most consumers aren't aware that a bank may be lending them money without ever having done an independent appraisal of the asset. The assumption among most home buyers is that a bank wouldn't approve a mortgage if the house wasn't worth the buying price...