Here’s a discussion I was having via email about a proposed property valuation settlement with MPAC*; it came down (seriously) to a coin flip.
Life is like that… sometimes.[NAMES AND SOME DETAILS CHANGED FOR PRIVACY REASONS]
Bill, it’s something
but is it enough? Did MPAC do enough to get your property’s value right?
This is what we
The property was purchased by Acme Group Inc in 2016 for $350,000, which is much less than MPAC’s 2012 assessment of $762,000 or even MPAC’s more recent assessment
(2016) of $616,000.
There has been no additional
development in this rural part of the city in more than 20 years; as a result,
land and building values for industrial property have remained depressed. This
property had been for sale for quite some time before the previous owner was
able to find a buyer.
About one-half of the warehouse
remains vacant. The existing house on the property requires a great deal of
renovation, and is currently unoccupied.
There have been no changes to any of
the buildings on site since its acquisition.
The location is distant from
population centres, and is surrounded by agriculture.
It’s value in 2016 was $350,000
based on an arm’s length sale transaction.
The owners believe that the purchase
price reflects its market value, and that MPAC should revise its assessment to
Obviously, some facts
have changed. The warehouse is now nearly full, and the home on site is newly renovated and occupied…
So circumstances have
indeed altered since we put in this appeal.
We argued for a current value of $350,000, MPAC says it’s now worth $550,000, down from $762,000 and $616,000, but like I said before, is it enough?
Hang on a
I’ll flip a
Heads you take it,
tails you reject the settlement.
It came back heads
So, on balance, accept
it I think.
Bruce M Firestone, B Eng (civil), M Eng-Sci, PhD, Century 21 Explorer Realty Inc broker, Ottawa Senators founder, Real Estate Investment and Business coach 1-613-762-8884 firstname.lastname@example.org twitter.com/ProfBruce profbruce.tumblr.com/archive brucemfirestone.com
MPAC is the largest assessment jurisdiction in
North America, responsible for assessing and classifying
more than five million properties in Ontario.
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