In order to get a mortgage from a lender something you may be asked to provide with an appraisal for the subject assets. It is very common for a refinance and not so common for a first time loan. If the lender can not fairly determine the value of the asset then they will ask for an appraisal.
There are many companies who offer the service. The lenders usually have some preferred ones from them only they will accept an appraisal report.
Although the industry is not strictly regulated in Canada, but there are some respected institutes offering training and certification on real-estate appraisal.
- Appraisal Institute if Canada (AIC)
They have strict educational requirements and continuing educational requirements as well. - The Canadian National Association of Real Estate Appraisers (CNAREA)
This is a not for profit, independent association that certifies and regulates real property appraisers in Canada. - Till mid of 2007 OREA used to offer Market Value Appraiser (MVA) designation. It does not offer that anymore.
- Fellow of Real Estate Institute (FRI) is offered by Real Estate Institute of Canada.
How market value of a property is determined:
Following are the main approaches used to figure out the cost of a property:
- Income approach
- Cost approach
- Direct Comparison approach
Types of appraisals
There are many types of appraisals are done to satisfy various client needs. Below the major types are listed.- Desktop Appraisal
- Drive by Appraisal
- Full Appraisal
Contact a local appraiser’s office to find out more. You should always ask the lender to send you a list of their accredited appraisers.