VOLUME 56 | BOOK 2 | 2012THE OFFICIAL PUBLICATION OF THE APPRAISAL INSTITUTE OF CANADA<\/p>\n
REAL VALUE EXPERTS | EXPERTS EN \u00c9VALUATION<\/p>\n
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EASEMENTS
\nand agricultural land values<\/p>\n
Highest and best use analysis
\n Underwriter risk requirements <\/p>\n
versus good appraisal practice
\n Ground leases: <\/p>\n
rent reset valuation issues<\/p>\n
mailto:info@aicanada.ca
\nmailto:info@aicanada.ca
\nmailto:info@aicanada.ca<\/p>\n
ACI is a division of Verisk Analytics (NASDAQ: VRSK), a leading provider of risk assessment solutions to professionals in insurance, health care, mortgage
\nlending, government, risk management, and human resources. Verisk Analytics includes the holdings of Insurance Services Offi ce, Inc. (ISO) and its
\nsubsidiaries, which provide essential solutions to the insurance, mortgage lending, and healthcare markets. For more information, visit www.verisk.com.<\/p>\n
Raising the Bar in Appraisal Technology<\/p>\n
Innovative Technology – 30 Years and Counting – ACI has been a pioneer, providing
\ninnovative tools that save appraisers time and money. Look to ACI to provide the foremost
\nsolution in the industry. Visit AppraisersChoice.com for the latest news and information. <\/p>\n
Benefi cial Partnerships – ACI features solid integration with sketch tools, location maps,
\nfl ood data, and tools that streamline the appraisal report writing process. It is through these
\npartnerships that ACI appraisers have many options and why ACI is \u201dThe Appraiser\u2019s Choice.\u201d <\/p>\n
Premier Service – Toll-free technical support, LIVE chat operators, and over 140 online
\nvideos on AppraisersChoice.com provides ACI appraisers with multiple support channels. <\/p>\n
Best Value – Hands-down, ACI offers the most comprehensive real estate appraisal software
\npackage available in the industry. We invite you to experience ACI\u2019s industry-leading appraisal
\ntechnology and service.<\/p>\n
Save time and effort <\/p>\n
with CRAL\u2019s Market <\/p>\n
Conditions eService. <\/p>\n
This service works <\/p>\n
with most MLS <\/p>\n
providers.<\/p>\n
Comps Import Transfer
\nMLS Data Directly<\/p>\n
Worldwide ERC\u00ae Summary
\nAppraisal Report<\/p>\n
The Worldwide <\/p>\n
ERC\u00ae Summary <\/p>\n
Appraisal Report <\/p>\n
is now available in <\/p>\n
CRAL2010\u2122.<\/p>\n
Easily defi ne <\/p>\n
shaded portions <\/p>\n
that represent your <\/p>\n
subjects\u2019 Market <\/p>\n
Area or Boundary.<\/p>\n
Neighborhood Boundaries
\nin MapPoint<\/p>\n
MapPoint Neighborhood Boundaries
\nVisually defi ne your subject property\u2019s
\nmarket area and save for future use.<\/p>\n
New Forms! Worldwide ERC\u00ae
\nSummary Appraisal Report
\nNow available for relocation experts.<\/p>\n
MLS Import eService
\nImport MLS data directly into your reports
\nwith CRAL\u2019s Market Conditions eService<\/p>\n
\u25aa Appraisal Forms Library
\n \u25aa Order Tracking
\n \u25aa Photo Management
\n \u25aa Comps Database
\n \u25aa ACI Sketch\u2122 <\/p>\n
\u25aa Digital Signature (1)
\n \u25aa ChoiceCredits\u2122 (250)
\n \u25aa Free PDF Creator
\n \u25aa Premier Plus Service (1 year)
\n \u25aa Concierge Service<\/p>\n
http:\/\/www.verisk.com
\nhttp:\/\/www.appraiserschoice.com<\/p>\n
ACI is a division of Verisk Analytics (NASDAQ: VRSK), a leading provider of risk assessment solutions to professionals in insurance, health care, mortgage
\nlending, government, risk management, and human resources. Verisk Analytics includes the holdings of Insurance Services Offi ce, Inc. (ISO) and its
\nsubsidiaries, which provide essential solutions to the insurance, mortgage lending, and healthcare markets. For more information, visit www.verisk.com.<\/p>\n
Raising the Bar in Appraisal Technology<\/p>\n
Innovative Technology – 30 Years and Counting – ACI has been a pioneer, providing
\ninnovative tools that save appraisers time and money. Look to ACI to provide the foremost
\nsolution in the industry. Visit AppraisersChoice.com for the latest news and information. <\/p>\n
Benefi cial Partnerships – ACI features solid integration with sketch tools, location maps,
\nfl ood data, and tools that streamline the appraisal report writing process. It is through these
\npartnerships that ACI appraisers have many options and why ACI is \u201dThe Appraiser\u2019s Choice.\u201d <\/p>\n
Premier Service – Toll-free technical support, LIVE chat operators, and over 140 online
\nvideos on AppraisersChoice.com provides ACI appraisers with multiple support channels. <\/p>\n
Best Value – Hands-down, ACI offers the most comprehensive real estate appraisal software
\npackage available in the industry. We invite you to experience ACI\u2019s industry-leading appraisal
\ntechnology and service.<\/p>\n
Save time and effort <\/p>\n
with CRAL\u2019s Market <\/p>\n
Conditions eService. <\/p>\n
This service works <\/p>\n
with most MLS <\/p>\n
providers.<\/p>\n
Comps Import Transfer
\nMLS Data Directly<\/p>\n
Worldwide ERC\u00ae Summary
\nAppraisal Report<\/p>\n
The Worldwide <\/p>\n
ERC\u00ae Summary <\/p>\n
Appraisal Report <\/p>\n
is now available in <\/p>\n
CRAL2010\u2122.<\/p>\n
Easily defi ne <\/p>\n
shaded portions <\/p>\n
that represent your <\/p>\n
subjects\u2019 Market <\/p>\n
Area or Boundary.<\/p>\n
Neighborhood Boundaries
\nin MapPoint<\/p>\n
MapPoint Neighborhood Boundaries
\nVisually defi ne your subject property\u2019s
\nmarket area and save for future use.<\/p>\n
New Forms! Worldwide ERC\u00ae
\nSummary Appraisal Report
\nNow available for relocation experts.<\/p>\n
MLS Import eService
\nImport MLS data directly into your reports
\nwith CRAL\u2019s Market Conditions eService<\/p>\n
\u25aa Appraisal Forms Library
\n \u25aa Order Tracking
\n \u25aa Photo Management
\n \u25aa Comps Database
\n \u25aa ACI Sketch\u2122 <\/p>\n
\u25aa Digital Signature (1)
\n \u25aa ChoiceCredits\u2122 (250)
\n \u25aa Free PDF Creator
\n \u25aa Premier Plus Service (1 year)
\n \u25aa Concierge Service<\/p>\n
http:\/\/www.appraiserschoice.com<\/p>\n
America\u2019s Most Hassle-Free Appraisal Software
\nIs Now Canada\u2019s Most Hassle-Free Appraisal Software<\/p>\n
www.BradfordSoftware.com
\nVisit our website for Introductory Pricing Specials<\/p>\n
800-622-8727<\/p>\n
Selected by Centract Settlement Services as
\nthe only approved appraisal software for report
\ndelivery, ClickFORMS is now being made
\navailable to all appraisers in Canada.<\/p>\n
ClickFORMS is the software most recognized for being
\nhassle-free. With intuitive \u201cDrag and Drop\u201d simplicity
\nyou don\u2019t need special training. In fact you\u2019ll probably
\ncreate your first report without even reading the
\nmanual. And it does all the little things you would
\nexpect from quality software. Like providing all your
\nforms in English and French with a spell checker that
\nalso works in English and French. The sketcher is
\nbuilt-in, but it\u2019ll also work with the one you currently
\nuse. ClickFORMS is software that works the way you
\nwould expect software to work – hassle free!<\/p>\n
If you\u2019re looking for a better way, an easier way to
\nproduce appraisal reports and want to save some
\nmoney, switch to ClickFORMS today. Centract
\nSettlement Services did.<\/p>\n
Simplicity at its Best
\nProductivity at its Highest<\/p>\n
only $349
\nClickFROMS is a trademark of Bradford Technologies, Inc.; Other brand and product names are trademrks of their respective owners.<\/p>\n
or
\n$30\/mo<\/p>\n
Canadian_Winter_2011:Canadian Property Valuation Magazine 1\/27\/2011 1:38 PM Page 1<\/p>\n
http:\/\/www.BradfordSoftware.com<\/p>\n
click here to return to table 0f contents<\/p>\n
6 AIC Annual Conference \u2013
\nSHAPE OF THINGS TO COME<\/p>\n
8 Executive Corner \u2013
\nTransformation is happening\/Do
\nthey know what we do?<\/p>\n
\u2022 Notre transformation pour le
\nmieux se poursuit\/Saven-ils ce
\nque nous faisons?<\/p>\n
12 Bob Thompson \u2013
\nSpecialization and diversification
\nwork hand-in-hand<\/p>\n
16 Highest and best use analysis<\/p>\n
18 Underwriter risk requirements
\nversus good appraisal practice<\/p>\n
21 Easements
\nand
\nagricultural
\nland values
\nrevisited<\/p>\n
26 Ground leases:
\nrent reset valuation issues<\/p>\n
30 Candidates \u2013 GET OUT THERE!<\/p>\n
31 The challenge of
\nconsulting assignments<\/p>\n
32 Canadian real estate
\ncases of interest<\/p>\n
33 Responding to member questions<\/p>\n
34 Terms of Reference for an appraisal<\/p>\n
36 Seven reasons to say
\n\u201cNO\u201d to new business<\/p>\n
38 Technology: Using simple
\nregression analysis \u2013 a strong
\ncase for taking that stats course<\/p>\n
40 The path less travelled:
\nnon-traditional valuation careers<\/p>\n
42 Spotlight on Continuing
\nProfessional Development<\/p>\n
44 Designations\/Candidates\/Students<\/p>\n
45 NEWS \u2013 Critical Dates\/In Memoriam<\/p>\n
46 Calendar of Events<\/p>\n
403-200 Catherine Street,
\nOttawa, ON K2P 2K9 <\/p>\n
Phone: (613) 234-6533 Fax: (613) 234-7197
\nWeb site: www.aicanada.ca<\/p>\n
Contact us at: info@aicanada.ca <\/p>\n
Board of Directors
\nConseil d\u2019administration<\/p>\n
President \u2013 Pr\u00e9sidente
\nMichael Mendela, AACI (ON)<\/p>\n
President Elect \u2013 Pr\u00e9sident d\u00e9sign\u00e9
\nDavid Shum, AACI (AB)<\/p>\n
Immediate Past-president \u2013
\nPr\u00e9sident sortant immediate<\/p>\n
Grant Uba, AACI (ON) <\/p>\n
Vice-Presidents \u2013 Vice-pr\u00e9sidents
\nDan Wilson, AACI (BC)
\nScott Wilson, AACI (PE)<\/p>\n
Directors \u2013 Directeurs
\nJohn Peebles, AACI (BC)
\nDan Brewer, AACI (ON) <\/p>\n
Anne Helliker, AACI (ON)
\nDaniel Doucet, AACI (NB)
\nLouis Poirier, AACI (QC)<\/p>\n
Greg Bennett, AACI (NL)
\n Surinder Pal, AACI (MB)<\/p>\n
Richard Colbourne, AACI (NS)
\nThomas Fox, AACI (SK)
\nJohn Farner, AACI (AB)<\/p>\n
Chief Executive Officer
\nKeith Lancastle, MBA, CAE, Ottawa<\/p>\n
Communications Officer
\nMary-Jane Erickson, Ottawa<\/p>\n
Managing Editor \u2013
\nR\u00e9dacteur administratif<\/p>\n
Craig Kelman, Winnipeg<\/p>\n
Assistant Editor \u2013
\nR\u00e9dacteur en chef adjoint<\/p>\n
Cheryl Parisien, Winnipeg<\/p>\n
Editorial Board
\nAIC would like to thank the following <\/p>\n
individuals for their assistance and support:
\nJohn Peebles, AACI \u2013 Chair<\/p>\n
Anne Helliker, AACI
\nRyan Tung, AACI
\nRob Grycko, CRA<\/p>\n
Jane Londerville, B.Sc., M.B.A.,AACI (Hon)
\nAssociate Professor, University of Guelph<\/p>\n
Published by the
\nVolume 56, Book 2, 2012<\/p>\n
Contents<\/p>\n
Publication Mails Agreement #40008249.
\nReturn undeliverable Canadian addresses to: Appraisal Institute of Canada,
\n403-200 Catherine St., Ottawa, ON K2P 2K9. Email: info@aicanada.ca<\/p>\n
The articles printed in this issue represent authors\u2019 opinions only and are not neces-
\nsarily endorsed by the APPRAISAL INSTITUTE OF CANADA. Copyright 2012 by the
\nAPPRAISAL INSTITUTE OF CANADA. All rights reserved. Reproduction in whole or
\nin part without written permission is strictly prohibited. Subscription, $40.00 per
\nyear. Printed in Canada. Les articles imprim\u00e9s dans ce num\u00e9ro ne rep\u00e9sentent que
\nl\u2019opinion de leur auteur respectif, mais ne sont pas n\u00e9ces\u2013sairement endoss\u00e9s par
\nL\u2019INSTITUT CANADIEN DES \u00c9vALUATEURS. Tous droits reserv\u00e9s 2012 par L\u2019INSTITUT
\nCANADIEN DES \u00c9vALUATEURS. La reproduction totale ou partielle sous quelque
\nform que se soit sans authorisation \u00e9crite est absolument interdite. Abonnement
\n$40.00 par ann\u00e9e. Imprim\u00e9 au Canada.
\n* The Appraisal Institute of Canada reserves the right to reject advertising
\nthat it deems to be inappropriate.
\n** The publisher and the Appraisal Institute of Canada cannot be held liable for
\nany material used or claims made in advertising included in this publication.
\nIndexed in the Canadian Business Index and available on-line in the Canadian
\nBusiness & Current Af fairs database.<\/p>\n
ISSN 0827-2697<\/p>\n
Publication management, design and production by:<\/p>\n
3rd Floor \u2013 2020 Portage Avenue
\nWinnipeg, MB r3J 0K4<\/p>\n
Phone: 866-985-9780 \u2022 Fax: 866-985-9799
\nE-mail: info@kelman.ca \u2022 Web: www.kelman.ca<\/p>\n
Design\/Layout: Theresa Kurjewicz
\nMarketing Manager: Kris Fillion<\/p>\n
Advertising Co-ordinator: Lauren Campbell<\/p>\n
America\u2019s Most Hassle-Free Appraisal Software
\nIs Now Canada\u2019s Most Hassle-Free Appraisal Software<\/p>\n
www.BradfordSoftware.com
\nVisit our website for Introductory Pricing Specials<\/p>\n
800-622-8727<\/p>\n
Selected by Centract Settlement Services as
\nthe only approved appraisal software for report
\ndelivery, ClickFORMS is now being made
\navailable to all appraisers in Canada.<\/p>\n
ClickFORMS is the software most recognized for being
\nhassle-free. With intuitive \u201cDrag and Drop\u201d simplicity
\nyou don\u2019t need special training. In fact you\u2019ll probably
\ncreate your first report without even reading the
\nmanual. And it does all the little things you would
\nexpect from quality software. Like providing all your
\nforms in English and French with a spell checker that
\nalso works in English and French. The sketcher is
\nbuilt-in, but it\u2019ll also work with the one you currently
\nuse. ClickFORMS is software that works the way you
\nwould expect software to work – hassle free!<\/p>\n
If you\u2019re looking for a better way, an easier way to
\nproduce appraisal reports and want to save some
\nmoney, switch to ClickFORMS today. Centract
\nSettlement Services did.<\/p>\n
Simplicity at its Best
\nProductivity at its Highest<\/p>\n
only $349
\nClickFROMS is a trademark of Bradford Technologies, Inc.; Other brand and product names are trademrks of their respective owners.<\/p>\n
or
\n$30\/mo<\/p>\n
Canadian_Winter_2011:Canadian Property Valuation Magazine 1\/27\/2011 1:38 PM Page 1<\/p>\n
Canadian Property Valuation Volume 56 | Book 2 | 2012 \u00c9valuation Immobili\u00e8re au Canada 5<\/p>\n