Been a While
Yes it has been a while since I last chatted it up. But there are reasons for that, mostly good. Back in April when I last wrote, we had 4 appraisers with us. In June, we were down 2 very quickly. Brad Myers, left to start a new career in BC. We wish him luck, and it sounds like he is enjoying the new challenge. Just a couple weeks later, our candidate appraiser, Travis Kraft accepted a job with a municipal assessment department. Again, he sounds like he is enjoying life and wish him the best. Our endevoured leader, Larry Lee, officially retired as an appraiser, and is handling, day to day operations and other interests. That leaves us with just myself and Cam Mierau.
As you may know, Cam is our senior appraiser. He's been in the business since 1988 and knows the market, and the industry inside and out. I, have been appraising since 2007 and have finally started to enjoy it again. We have some exciting news coming. So we'll keep you posted on some upcoming changes when they become official.
Lists
Over the years, getting on approved appraiser lists have been the bane of every appraisers existence. Thankfully we have worked hard to get on and stay on many lenders lists. As you may know last year we got on Canadian Western Bank/Optimum list. Just last month, with the help of some of our great clients, we got back on Street Capital Bank of Canada list. You can now order files directly to either of us. We are working hard to get on other lenders lists too. So if you have one you would like us on, feel free to let us know and we will do so. I know of a couple lenders who re-evaluate their lists every November/December, so we'll be working on those.
New Forms
As of January 1, 2018, the Appraisal Institute of Canada came out with new guidelines and appraiser standards (known to us as CUSPAP). These new guidelines were updated again and all files must be compliant with them.
Please ensure when ordering the following is included or known:
As you may know, Cam is our senior appraiser. He's been in the business since 1988 and knows the market, and the industry inside and out. I, have been appraising since 2007 and have finally started to enjoy it again. We have some exciting news coming. So we'll keep you posted on some upcoming changes when they become official.
Lists
Over the years, getting on approved appraiser lists have been the bane of every appraisers existence. Thankfully we have worked hard to get on and stay on many lenders lists. As you may know last year we got on Canadian Western Bank/Optimum list. Just last month, with the help of some of our great clients, we got back on Street Capital Bank of Canada list. You can now order files directly to either of us. We are working hard to get on other lenders lists too. So if you have one you would like us on, feel free to let us know and we will do so. I know of a couple lenders who re-evaluate their lists every November/December, so we'll be working on those.
New Forms
As of January 1, 2018, the Appraisal Institute of Canada came out with new guidelines and appraiser standards (known to us as CUSPAP). These new guidelines were updated again and all files must be compliant with them.
Please ensure when ordering the following is included or known:
- If the mortgage financing is for a 1st, 2nd or other mortgage
- If it is conventional financing
All other information is required, as per usual, including the intended user and the borrower type (purchaser, borrower, owner, etc). When we write the reports we must also state the current occupancy of the property. While the owner may desire to move in next week, but it is tenant occupied at the time of the inspection, we must put down "Tenant occupied". I know in some cases it is an immediate family member, and we can add "Tenant/family". As some lenders differentiate between a family member and a true tenant.
The new forms are also available for non appraisal files such as progress inspections and Market Rent/Schedule A reports. Please note, a stand alone Market Rent/Schedule A report is no longer just a one page letter. In many cases it is almost as many pages as a full report. We must state the condition, size, layout, etc so we can "accurately" account for the property we have taken on for the assignment. Most of this falls under the "reasonable appraiser" test. That is defined as "would a reasonable appraiser, do this or not? Would a reasonable appraiser include this information? Is this amount of information reasonable enough to make an accurate conclusion?"
Market Outlook
When I last spoke we had seen significant declines in sales volume throughout the City of Calgary and surrounding areas. Volumes have continued to decline and just recently we have seen the supply increase which is now having downward pressure on property values. I have noticed a justifiable decline in property values in most districts over the past 60 days. This trend is expected to continue for a while. However, while values are declining, they are not declining at a significant rate and this decline may be just cyclical.
In the September market report, CREB stated:
“Calgary’s economy continues to struggle with
unemployment, which rose again last month to over eight
per cent. Concerns in the employment market, higher
lending rates and shaken confidence are weighing on
housing demand,” said CREB® chief economist Ann-Marie
Lurie.
“At the same time, supply levels continue to remain high,
resulting in persistent oversupply and price declines.”
While new mortgage rules are showing the impact on volume, now may be a great time to buy or invest as values are not expected to decline anymore significantly and rumors have it the Bank of Canada will be raising rates again soon.
Currently, I think it is a wait and see. I have been doing a number of files for marketing and/or tax purposes. I've told people, "If you can rent the property out, and break even, hold onto the property for a year or two before selling.
One issue we are starting to see again, is the rise in foreclosures and divorces. Many lenders have worked with people in arrears to help them stave off foreclosure but unfortunately time has run out for many. Divorces have crept up, causing properties to be listed and foreclosed properties are starting to be listed which may again raise the supply volume.
New Help
For those of you who work with realtors, I have seen a significant rise in calls from realtors, asking for our expertise in helping to list or sell a property. We have a variety of files we can do to help them set a list/sale price. While we can help with that, we can also provide measurements and floor plans that meet RECA RMS guidelines.
Lastly
If you have any questions, comments or concerns let us know. We will work with you and your clients to ensure everyone understands and is satisfied. Over the past 2 months, we have been extremely busy and we appreciate your patience if we are not able to return a file to you the next day. But as we get use to the higher volume and the new forms, we will be back to form. HOWEVER, remember, someone once said, "Fast, Cheap, and Good…pick two. If it’s fast and cheap it won’t be good. If it’s cheap and good it won’t be fast. If it’s fast and good it won’t be cheap." Quick turn arounds do not always mean a good report. We want to provide high quality work and ensure it is well supported.
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Jared Nolan Moore, CRA, P. App.
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Bus: (403) 614-3200
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