AIC 103 - Applications of Property Valuation: Essential Slides

AIC 103 is a webinar delivered by the Appraisal Institute of Canada (AIC) national staff. It identifies and provides opportunities to implement AIC's First Principles of Value and Professional Competencies into a member's professional practice. Candidate members will also be introduced to the impact of a co-signer/supervisor relationship, reports, and the application of CUSPAP.

Ideal for Candidates in their first 12 months of membership, this 2-hour workshop and accompanying materials offer a high-level exploration of AIC's expectations of membership and a framework to continue delivering quality appraisal services.

Transcript

1. AIC 103 APPLICATIONS OF PROPERTY VALUATION
2. AGENDA 01 – Who are AIC Real Property Appraisers? 02 – Co-signing and Professional Mentorship 03 – Professional Competencies 04 – First Principles of Value 05 – CUSPAP 06 – Reporting 07 – What’s Next?
3. 01WHO ARE REAL PROPERTY APPRAISERS?
4. p4 AIC DESIGNATED MEMBERS AIC Designated members are highly trained professionals with expertise in economic, legal, and market interrelationships affecting real estate. They possess strong analytical skills, a commitment to ethical standards, and an ability to assess property value through a disciplined, research-driven approach. An AIC Designated Member embodies a professional committed to the First Principles of Value, which form the foundation of valuation practice. These principles guide their work across valuation, consulting, feasibility studies, and litigation.
5. p5 AIC ACROSS CANADA PROVINCIAL ASSOCIATIONS https://www.aicanada.ca/about-aic/provincial-affiliates 10 Provincial organizations across Canada 2 licenced provinces • New Brunswick • Nova Scotia
6. p6 EDUCATION REQUIREMENTS FOR CRA AND AACI APPRAISERS CRA - Canadian Residential Appraiser • 8 post-secondary courses (UBC supported) • 1 year of relevant work experience • Collaboration with a Designated Member during work experience • AIC’s Applied Experience Program AACI (Accredited Appraiser Canadian Institute): Requires advanced education in property valuation, including both residential and commercial properties and successful completion of the AIC (Appraisal Institute of Canada) Professional Programme. • Collaboration with a Designated Member during work experience • 2 years of work experience https://www.aicanada.ca/become-an-appraiser/path-aic-designation/path-designation- candidate-member/
7. p7 FEE OR NON-FEE? FEE A member who prepares or assists in the preparation of an appraisal report and the report is provided to a third party that relies on it. NON-FEE A Member who renders professional services exclusively for the internal use of his/her employer and whose professional services reports are kept in-house and are not provided to an outside party, although a fee may be paid by that outside party to cover the cost of the preparation of the report.
8. 02CO-SIGNERS AND PROFESSIONAL MENTORSHIP
9. p9 CO-SIGNERS VS. MENTORS CO-SIGNERS • Co-signers are Designated Members responsible for ensuring the quality of a Candidate’s work, meeting standards, and mitigating risks such as complaints or liability issues. • Beyond monitoring quality, AIC’s Co- singing Policy expects Co-signers to guide candidates toward becoming successful designated members of AIC. This includes supervising, advising, and coaching them in their professional growth. MENTORS • Mentors can be identified by anyone in any profession, interest, or hobby. • Effective mentorship emphasizes integrity, accountability, and ongoing education. Mentors play a vital role in shaping well-rounded, competent appraisers. • Can be co-signers, peers, or Designated Members
10. p10 CO-SIGNING RESPONSIBILITIES Co-signer Responsibilities • Ensure co-signing relationship is registered • Complete required educational courses • Supervise candidates • Accompany Candidate Members on at least ten property inspections • Verify the competency of Candidate Members in valuation tasks Candidate Responsibilities • Maintain Good Standing with AIC • Apply feedback to improve reports and professional competency • Follow supervision and training protocols
11. p11 CO-SIGNING RESPONSIBILITIES Shared Responsibilities • Maintain a professional, harassment-free environment • Ensure reports comply with CUSPAP • Respect the co-signing agreement and professional guidance • Foster a collaborative and respectful working relationship
12. CUSPAP 03
13. p13 CUSPAP CUSPAP outlines the standards of work that AIC Members must meet when delivering appraisal services. Ethical Standard Reporting Standard Real Property Appraisal Standard Review Standard Consulting Standard Reserve Planning Standard Machinery and Equipment Appraisal Standard Mass Appraisal Standard
14. PROFESSIONAL COMPETENCIES AND FIRST PRINCIPLES OF VALUE 04
15. p15 PROFESSIONAL COMPETENCIES Professional Competencies Analytical Thinking Conceptual Thinking Decisiveness Client Services Orientation Focus on Quality and Details  Breaks down problems  Sees Basic Relationships  Sees Multiple Relationships  Applies Basic Rules  Sees Patterns Based on Past Experience  Applies Learned Complex Concepts  Making Foundational Decisions  Making Informed Decisions in Diverse Situations  Responds Appropriately  Maintains Clear Communication  Takes Personal Responsibility for Serving the Client  Checks Own Work  Monitors Work for Quality  Monitors Plan, and Progress of Work
16. p16 FIRST PRINCIPLES OF VALUE Problem Identification Property Content Legal Considerations Highest & Best Use Research Economic Analysis
17. p17 Problem Identification Property Content Legal Considerations Highest & Best Use Research Economic Analysis The initial step in any valuation or consulting assignment is to establish the context for the work to be completed: i.e., what exactly is needed to be done and why. • Purpose of the Assignment • Intended use of the Assignment • Definition of Value FIRST PRINCIPLES OF VALUE
18. p18 FIRST PRINCIPLES OF VALUE Problem Identification Property Content Legal Considerations Highest & Best Use Research Economic Analysis Legal considerations are always a part of a real property valuation assignment. These include: • Property Rights • Land Use Regulations • Legislation and the Courts
19. p19 FIRST PRINCIPLES OF VALUE Problem Identification Property Content Legal Considerations Highest & Best Use Research Economic Analysis Highest and best use is the cornerstone of all valuation assignments. Highest and best use is a necessary filter which must be applied for the data from property and market research to become a valid and reliable basis for economic analysis and conclusions.
20. p20 FIRST PRINCIPLES OF VALUE Problem Identification Property Content Legal Considerations Highest & Best Use Research Economic Analysis Research is the tool for gathering necessary knowledge of the subject and appropriate market evidence. Without adequate knowledge of the subject, the valuation professional is unable to offer any constructive comment on the real property. Likewise, one cannot operate in isolation from the marketplace.
21. p21 FIRST PRINCIPLES OF VALUE Problem Identification Property Content Legal Considerations Highest & Best Use Research Economic Analysis The valuation professional applies economic analysis to understand the impact of market variables on a property’s value and use. In effect, valuation professionals are applied economists. The tools applied in the valuation profession are all forms of economic modelling: the three approaches to value; computer- assisted mass appraisal; feasibility studies; or reserve fund reports.
22. p22 Professional Competencies First Principles of Value CUSPAP AIC’S PRACTICE STANDARDS
23. p23 CASE SUMMARIES • AIC offers case studies annually for members to reflect on to increase members’ understanding of the application of standards rules • Case Summaries can also provide guidance as to best appraisal practices • 2008-2023 Case Summaries Insurance Claims Civil Case Studies Court Case Summaries
24. p25 Best Practices: • Track growth throughout Candidacy • Complete multiple times • Identify multiple property or work experience examples for each First Principle and Competency • Discuss and reflect with co-signer, supervisor, mentor or peers https://www.aicanada.ca/members-home/path-to-designation/how-to-complete-a-progress-report/ PROGRESS REPORT
25. REPORTING 06
26. p27 APPROACHES TO VALUE Direct Comparaison Approach • Analyse properties that are similar to the property in the assignment Cost Approach • Considers land and building components separately • Value is determined by adding these estimates together Income Approach • Earning potential of the property an important valuation element • Analyzes property’s revenue and expenses to convert income into present value • Not used in residential valuation
27. p28 REPORT TYPES Form Reports • Most commonly used reports on residential properties Concise Reports • Outlines key facts and conclusions of an assignment Comprehensive Reports • Used when client needs greater detail, research and conclusions
28. p29 • Career diversification begins with you! • If you feel stuck in a rut, work with your co-signer/supervisor to identify unique opportunities • Reflect on your progression over time – what you can accomplish now is going to look very different in a few years. • Use AIC Career Diversification Reflection • Note: Not all property types will be relevant to your geographic area. https://forms.office.com/r/g9qV21KiKZ Reporting and Service Diversity
29. p30 BRINGING IT ALL TOGETHER AIC Candidate Member Competencies First Principles CUSPAP Effective Reporting Co-signing / Supervisory Relationship
30. Priorities in Motion WHAT’S NEXT
31. p32 WHAT’S NEXT? • Working with Co-Signer or Supervisor • UBC CPD Courses • Progress Report • Upcoming Webinars/Workshop First Principles Competencies • AIC 103 Web Page • Applied Experience Written Exam
32. We got answers! QUESTIONS