If you're a homeowner or buyer in Canada, you may wonder whether your real estate agent can perform an official appraisal of a property. The short answer is that licensed real estate agents can provide market evaluations (like Comparative Market Analyses), but certified appraisals must be done by licensed appraisers. This article will explain the differences between certified appraisals and market evaluations, clear up common misconceptions about appraisals, and guide you on choosing the right professional for your needs.
Certified Appraisals vs. Market Evaluations
Certified Appraisal: A certified real estate appraisal is a formal, unbiased assessment of a property's market value performed by a qualified appraiser. In Canada, appraisals are typically conducted by professionals who are trained and often designated members of the Appraisal Institute of Canada (AIC), holding titles such as CRA (Canadian Residential Appraiser) or AACI (Accredited Appraiser Canadian Institute). These appraisers act as an independent third party in the process, offering an objective opinion of value in the form of a detailed report. Banks and other lenders require that such appraisals be done by a certified appraiser – they will not accept a valuation from someone who isn’t properly qualified. In fact, only a licensed appraiser can produce an official appraisal report in Canada.
It’s important to note that in some provinces (such as Nova Scotia and New Brunswick) there are specific laws requiring appraisers to hold a provincial license under an Appraisers Act. For example, Nova Scotia’s Real Estate Appraisers Act mandates that anyone practicing real estate appraisal be registered with the provincial appraisers association. In other provinces, a separate provincial license may not be required, but in all cases lenders and courts will expect a professional with recognized credentials to perform an appraisal.
Market Evaluation (Comparative Market Analysis): A market evaluation – often called a Comparative Market Analysis (CMA) or simply a home evaluation – is an estimate of a property's likely selling price prepared by a real estate agent or broker. Real estate agents have access to recent sales data and use their market knowledge to compare your home with similar properties that have sold recently in the area. The agent will look at factors like location, size, number of bedrooms, lot size, features (garage, floor plan, upgrades, etc.), and overall condition to arrive at a recommended listing price or price range for your property.
While a thorough CMA uses some of the same data an appraiser would (like comparable sales and market trends), it is inherently more subjective. A CMA reflects what an agent believes a buyer might pay for the home, taking into account current market conditions and the agent’s read on the way buyers perceive the property. Because it is prepared by an agent, who may be interested in winning your business, a market evaluation can sometimes be optimistic.
Who Can Do Each: In Canada, only certified appraisers can perform official appraisals. Real estate agentscannot legally represent their opinion as a formal appraisal for purposes like mortgages or court disputes unless they also hold an appraiser license or designation. Most agents are not licensed appraisers. Their domain is in marketing and facilitating real estate transactions, not in providing official valuation reports.
Key Differences at a Glance
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Training and Credentials: Appraisals are done by licensed appraisers; market evaluations are done by real estate agents.
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Objectivity: Appraisers are independent. Agents have an interest in the transaction.
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Usage: Appraisal reports are accepted by lenders and courts. CMAs are used for pricing homes.
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Detail and Standard: Appraisals follow strict standards and produce formal reports. CMAs are informal.
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Cost: Appraisals often cost between $350 and $700. Market evaluations are usually free.
Common Buyer and Seller Misconceptions about Appraisals
Myth 1: “My real estate agent’s valuation is an official appraisal.”
Reality: A Realtor’s market evaluation is not a certified appraisal. It’s helpful guidance, not a legally recognized report.
Myth 2: “An appraisal will match the selling price or listing price.”
Reality: The appraised value may differ from listing or sale prices based on market data, not assumptions.
Myth 3: “Home improvements automatically add full value to the appraisal.”
Reality: Improvements increase appeal but don’t guarantee equal increases in appraised value. Appraisers assign value based on market demand.
Myth 4: “Bigger houses get higher appraisals.”
Reality: Size is one factor. Layout, condition, and location matter just as much.
Myth 5: “Tax assessment is the same as market value.”
Reality: Assessments are for tax purposes and often lag behind market changes.
Myth 6: “Appraisers are deal killers.”
Reality: Appraisers provide unbiased evaluations to protect all parties, including buyers, lenders, and sellers.
Myth 7: “Staging doesn’t matter to appraisers.”
Reality: While not key, cleanliness and condition affect perceived upkeep and can influence the appraisal.
How to Choose the Right Professional for Your Needs
1. Selling Your Home
A market evaluation from an experienced real estate agent is often enough to determine a good listing price. For unique properties or extra confidence, consider a pre-listing certified appraisal.
2. Buying a Home
Buyers rely on agent evaluations before making offers. Once a deal is reached, the lender usually hires a certified appraiser to confirm value. Buyers paying cash may opt for their own appraisal.
3. Refinancing or Legal Situations
Only certified appraisals are accepted for refinancing, divorce settlements, estate valuation, or tax appeals. A real estate agent’s CMA will not suffice.
4. When You Need Both
In many cases, you’ll work with both an agent (for market strategy) and an appraiser (for formal valuation). Use each where appropriate.
Conclusion
For a Canadian audience, the takeaway is clear: real estate agents and certified appraisers serve different roles when it comes to determining property value. A real estate agent can certainly evaluate your home and give a market opinion of value (and they do this daily as part of their job), but they cannot perform a “certified appraisal” unless they have separate licensing and act in that capacity. Most often, your agent will handle pricing strategy and negotiations, whereas an independent appraiser will be called in for any formal valuation needed by a lender or legal purpose.
If you are selling or buying, use your real estate agent’s knowledge of the market to guide your decisions. Just remember that this is a marketing tool, not an official valuation. When an official number is required (for a mortgage, for splitting assets, etc.), hire a professional appraiser.
Can real estate agents do appraisals in Canada? The answer is simple: They can provide market evaluations, but certified appraisals must be done by licensed appraisers.
Need help pricing your home accurately or getting a market evaluation in Vancouver?
Get in touch with Adam Chahl and the PLACE Real Estate Team – Oakwyn Realty. With deep experience in Vancouver’s real estate market, we’ll provide honest insights, data-driven evaluations, and professional support every step of the way.
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