Appraisal Theory In Practice

Transcription

1 2013 Great Minds Symposium Appraisal Theory In Practice Demonstration report: Guideposts for Best practices Back to the land: Land and agricultural valuation Depreciation analysis: A hands-on workshop Appraisal review: The questions to ask Cost estimation: Talking to the experts Market conditions and trends: CMHC presentation April 11 & 12, 2013 South Beach Casino Scanterbury, MB

2 Cost Estimation: Talking to the Experts A credible cost estimate requires the assessor to recognize the difference between replacement and reproduction cost; to distinguish between the various cost estimating procedures; and the ability to judge the reasonableness of the cost estimate. What s the Cost? PRESENTER: ADAM DING, MA, CIQS, CAGBC, LEED AP Adam Ding will discuss the various methods used to estimate building costs, and will focus on the preliminary estimate. He will address benchmarking, and how cost estimates are adjusted. Adam Ding is an instructor in the Civil Engineering Technology program at Red River College. He is a technical contributor to the journal Construction Economist, and has authored five technical manuals in the DeWalt Construction Estimation Series. The Quantity Survey: Case Example and Discussion PRESENTER: ISAAC GWENDO, PQS, BA (BLDG ECON) Isaac will demonstrate the methodology employed by Quantity Surveyors to produce an accurate construction cost estimate. The session will conclude with a critique and commentary on a typical replacement cost estimate used for assessment purposes. Isaac Gwendo, is the manager of the Winnipeg office of Hanscomb Limited. with responsibilities including preparing cost estimates, cost control analysis, cost trends evaluation and cost data studies.

3 Back to the land Rural Land and Agricultural Valuation PRESENTER: GORDON DAMAN, AACI, P.APP, MRICS, CAFA, B.A., DIP. AGR Part 1: Land The first portion of the seminar will review the process of valuing bare farm land taking into account influences such as productivity, assemblage, location, commodity pricing, environmental regulations and supply management. Part 2: Farm Improvements The second portion will review the process of valuing farm property improvements taking into account industry specific properties, supply management, location, gross size and public policy decisions. Gordon Daman is the President of Red River Group, an appraisal consulting firm specializing in residential, agricultural and commercial valuation in Southern Manitoba.

4 Virtual Guest Presentation Live Web-stream What questions must be asked-- when reviewing, or critiquing an appraisal report? How can an assessor ascertain the merit of an appraisal? Whether you re preparing for Cross-Examination of an Expert Witness, or trying to understand the strengths of your own evidence, a good thorough review of the Expert Report can be critical to your case. These presentations will walk you through an actual narrative appraisal, and provides excellent insight into the key things to look for in a Commercial Real Estate Appraisal Report. Larry Dybvig (Vancouver) PRESENTER: LARRY DYBVIG, AACI, P.APP, MAI, FRICS Larry Dybvig is presently the President and principal of Grover Elliott & Co. Ltd located in Vancouver. His extensive experience includes contributions to the 11th, 12th and 13th Editions of the Appraisal of Real Estate, the leading English language appraisal text. John VanSanten (Chicago) PRESENTER: JOHN VANSANTEN, MAI, MRICS John is the Managing Director of Valuation and Financial Opinions for Stout Risius Ross in Chicago. John s background includes valuations of all types of commercial and special use properties, with a particular emphasis on healthcare properties, including goingconcern and real estate valuations.

5 Great Ideas Lab Estimating Depreciation For Property Assessment Purposes PRESENTER: MALCOLM STADIG, ASA, CAE This hands-on workshop will demonstrate the methods used to estimate depreciation for property assessment purposes. This 3-hour session will include: Definition of depreciation Three major causes of depreciation. Three principal methods for estimating depreciation (market extraction method, economic age-life method, and breakdown method) Case examples to demonstrate the analysis Applications within a mass appraisal context Malcolm Stadig is a property valuation specialist with the Municipal Property Assessment Corporation (MPAC), the provincial assessment authority for Ontario. He specializes in the valuation of special-purpose manufacturing plants. In 2011, the IAAO published his article in the Journal of Property Tax Administration.

6 The Demonstration Report Guideposts For Best Practice Case examples and group discussions will supplement brief presentations on a range of topics which have been selected to help members writing a valuation report. In addition, these guideposts will provide practical advice to those who prepare and cross examine reports submitted into evidence at hearings. Please note: The following selection of topics is tentative, and is subject to change due to time and scheduling constraints. Introduction: An overview of a Written Appraisal Report A look at the industry standards for written valuation reports from the Appraisal Institute of Canada and the International Association of Assessing Officers with comparisons to the requirements for the AAOM s Demonstration Appraisal Report. Framing the Report (Assumptions, Limiting Conditions and Supporting Documentation) Each valuation analysis is completed from a certain perspective that should be articulated in the written valuation report. This session will highlight the importance of understanding and properly explaining assumptions and limiting conditions. Market Trends and Conditions Market conditions and trends are important parameters that help frame the valuation analysis. This session will touch on key economic indicators and discuss important sources of information. Featuring Dianne Himbeault (CMHC) Direct Comparison This session will highlight the importance of choosing good comparable properties and examine the question Is this property comparable? The appropriateness of adjustments will also be discussed using case studies to help both authors and reviewers gain a better understanding of the application of the direct comparison approach. Highest and Best Use Analysis in Practice The concept of highest and best use is paramount to well supported valuation conclusions. In a written report the Highest and Best Use can be understated, relying on intuition rather than comprehensive analysis. This session will highlight the four tests for a property s highest and best use and give some practical examples. Reconciliation: Summing It Up This session looks at the art of reconciling the various approaches to value in a written report, including how to use supporting documentation, neighbourhood and market analysis and the highest and best use analysis to draw logical conclusions as to the appropriate value.