Appraisal of Real Estate, Third Canadian Edition

Third Edition Changes

The Third Canadian Edition is an extensive update of the time-tested classic last published by the Appraisal Institute of Canada in 2005. This new edition has an easier-to-use layout to highlight important terms and concepts, and includes more graphics making it easier on the eyes of readers. The following summary highlights the more prominent additions and changes to the Third Canadian Edition. Real estate professionals would be well advised to turn to this new book for an up-to-date commentary on appraisal methodology and practice.

View the Table of Contents for the Third Edition
Comparison between 3rd and 2nd edition Tables of Contents. PDF icon
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Changes related to the Economic Climate

  • The downturn in real estate and financial markets and the interdependence of national economies are reflected in the updated discussion of money and capital markets along with the current thinking on market and marketability analysis.
  • Green building and sustainability is discussed reflecting the growing awareness of the built environment's influence on and relation to the natural world around it.

Data Collection and Analysis

  • Real estate markets is examined synthesising information on market cycles, influences and characteristics highlighting the sector as an investment market separate from the competing money and financial markets.
  • The updated Money and Capital markets discussion is extensively reorganised clearly defining the relationship of the capital market to real estate and to the valuation process.
  • In the discussion on Comparative analysis the chapter has undergone extensive revision with those techniques presented and examples cited facilitating understanding.
  • Highest and best use analysis continues to be explored and clarified in its use as improved: (1) continue existing use, (2) renovate existing use, or (3) raze existing improvements and develop site.

Changes in organisation and format

  • Discussing the Direct Comparison approach before other valuation techniques that rely on the approach (eg. Site valuation and depreciation estimation)
  • Drawing from dialogue between Appraisal Institute instructors and their students wrestling with the application of fundamental appraisal concepts, certain topics have been rearranged and where possible, "plain language" used for clarity.


  • Stand alone chapters covering discussions of valuation of statistics in appraisal, partial interests and financial reporting highlight those changes impacting the field of appraisal and provides resources for further study of these important topics.