Otto & Company - Services

Valuation Appraisal Services:

• all standard housing types, hobby farms, estate residential & executive homes
• residential rental properties ranges from small scale to the largest apartments
• all types of retail commercial, plazas, restaurants, and mixed uses
• small scale to regional sized industrial developments
• standard and specialized farming operations
• institutional properties such as: schools, churches, and medical facilities
• specialized uses such as: mini-storage, marinas, gravel pits, golf courses, motels & hotels, automotive dealerships, and leasehold
• road, rail & utility corridors, including expropriation issues

Consulting & Specialized Services:

• capital gains valuations, investment analysis, and cost-benefit studies
• expropriation, expert witness and rent arbitration
• competitive position analysis
• economic opportunity profiles, and GAP analysis
• business & equipment valuations
• condominium reserve fund studies
• feasibility studies for economic space allocations, and highest & best use studies for land & building developments

Which of the Following Services Would You like to Know More About?

Appraisals: What Is My Property Worth, and How Is That Determined?

Reserve Fund Studies: Long-term Common Element Replacement Planning

Lease Reviews: Investment Properties and Market Rents

Expropriation: What Is It? What Are My Options?

Appraisals: What Is My Property Worth, and How Is That Determined?

An appraisal is an impartial estimate or opinion of value, usually written, of an adequately described property, as of a specific date, and supported by the presentation and analysis of relevant data.

Because much of private, corporate, and public wealth lies in real estate, the determination of its value is essential to the economic well-being of society. It is the job of the professional appraiser to determine these values by gathering, analyzing, and applying information pertinent to a property.

Unquestionably, the professional opinion of the appraiser, backed by extensive training and knowledge, influences the decisions of people who own, manage, sell, purchase, invest in, and lend money based on the security of real estate. The appraiser is trained to be an impartial third party in the real estate process. This professional serves as a vital "check in the system," protecting Real Estate buyers from overpaying for property, as well as lenders from over financing buyers.

What an Appraiser does:
They can be called upon as a consultant or as a valuation specialist to provide an opinion on:
• Current value of property being bought or sold
• Future value of property being built
• Value for mortgage or lending purposes
• Value to assist in investment decisions
• Value of property involved in a legal dispute
• Value to properly measure property tax assessments, capital gains and other taxes
• Value of property to determine compensation when property is expropriated
• Consulting - feasibility studies, lease & rental rate analysis, and, Highest & Best Use studies.

What does an Appraisal Report include?
• The estimate of value
• The effective date of the appraisal
• The certification and signature
• The purpose of the appraisal
• The qualifying conditions
• The condition of the neighborhood
• An identification of the property and its ownership
• An analysis and interpretation of the data and the assumptions made
• The processing of the data by one or more of the three approaches to value
• Other descriptive support material such as maps, plans, charts, photographs, etc.
How is value estimated?
There are three basic methods used to arrive at an indication of value:

• The Cost Approach estimates the cost to build a new building identical to the subject being appraised, at current prices, subtracting accumulated depreciation and adding the estimated land value.

• The Income Approach relates to income-producing property and is based on the theory that value is the present worth of the income stream which the property is capable of producing when developed to its Highest & Best Use. The net operating income from the property is capitalized into value by an appropriate method and rate.

• The Direct Comparison (Comparative) Approach is based on the theory that an informed purchaser would pay no more for a property than the cost of acquiring another existing and equivalent property. The value estimate is based on the selling price and offerings of comparable properties in the subject's market.

To arrive at a final conclusion of value, the appraiser selects the value indicated by the approach most appropriate for the property and supported by the most reliable, factual and relevant market.

For a free consultation or proposal:

• Call (519) 432-2232 and speak with one of our representatives
• E-mail us at info@ottoandcompany.com
• Click Price Quote to request a quotation.

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Reserve Fund Studies: Long-term Common Element Replacement Planning

What is a Reserve Fund?
A Reserve Fund is any fund set aside for a specific purpose. For this purpose it would be for the repair and replacement of building elements and facilities.

What is a Reserve Fund Study?
An independent study done to determine how much money should be kept in the Reserve Fund, so that the Reserve Fund is sustainable and adequate for its stated purpose.

What about Condominium Properties?
The Ontario Condominium Act mandates that: Each Condominium must have one or more Reserve Funds to provide for future major repairs and replacements of Common Elements. Each Condominium must have performed an independent Reserve Fund at its inception, and must update or replace it every three years. Condominium Reserve Fund Studies must project Costs and Contributions over a 30-year period. The Common Elements are those parts of the Condominium held in common, which are not part of any unit. The Condominium Declaration sets out what belongs to the units, and what are Common Elements. We create a schedule of Common Elements, as an integral part of the Study.

What about Non-Condominium Properties?
Non-Condominium Properties also have a need for longer-term planning, but are not subject to the Condominium Act. They may wish to create or review a Reserve Fund. Each property may designate what elements it wishes to include in a Reserve Fund Study. In one study of a senior's complex, unit interiors were included, and we included a schedule of interior renovations. Each property may designate the time period to be covered, and any other relevant parameters.

What additional, related services do we provide?
Operating Cost Analysis
• Condominium Owners are more interested in the level and trend of future Condominium Fees. We can review past Operating Expenses, to determine longer-term trends. We incorporate those trends into the future projections as an identifiable and discrete element in the projection table, to project future Condominium Fees. Non-Condominium Property Owners may also benefit from this approach.

Valuation for Insurance Purposes
• Where co-insurance is a feature of the insurance policy, the Corporation is usually responsible to ensure that their coverage is adequate. This requires periodic independent valuations. We can conduct an appropriate valuation in conjunction with the Reserve Fund Study, with significant efficiencies, and savings to the Corporation.

For a free consultation or proposal:

• Call (519) 432-2232 and speak with one of our representatives
• E-mail us at info@ottoandcompany.com
• Click Price Quote to request a quotation.

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Lease Reviews: Investment Properties and Market Rents

Please be patient as we continue to develop this site.

For a free consultation or proposal:

• Call (519) 432-2232 and speak with one of our representatives
• E-mail us at info@ottoandcompany.com
• Click Price Quote to request a quotation.

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Expropriation: What Is It? What Are My Options?

What Does Expropriation Mean In Ontario?
• Expropriation is the power of a authorized authority (municipal, provincial, and federal government agency or public service companies) to take private property for public use upon payment of just compensation. This could include all or part of your land(s) or the rights-of-use for the same. These expropriation rights (powers) have been delegated to these agencies by legislation, in Ontario it is the Expropriations Act, R.S.O. 1990, c. E.26. Some examples of expropriation would include: taking a portion of your front yard for a road widening; placing an easement on your property for underground utilities, or overhead hydro transmission lines; or temporary easements for construction staging.

Can I Stop The Expropriation?
• Most of the time, the simple answer is "No". You can request a “hearing of necessity”, in order to question the legitimacy of the expropriation, but in most cases you cannot successfully challenge the fact of an expropriation. Due to legislative authority, the government and public service (utilities, etc.) agencies have the authority to expropriate.

What Are My Options?

You can negotiate with the “expropriating authority” directly, or hire council to negotiate on your behalf. However, even failing a resolution, they can proceed with the expropriation.

In Ontario, the “Expropriations Act” requires the authority to provide you with compensation under specific categories, including the payment for most of the “reasonable” costs to support your claim of compensation (appraisals, legal fees, etc.).

After this, an owner may apply to the Ontario Municipal Board (OMB), for a hearing to decide/arbitrate matters of compensation.

How Can We "The Appraiser" Help?

Under the direction of either the owner and/or their legal representative, an expert report(s) is prepared to determine:

Fair market value for the property taken;

Loss in value to any remaining lands and building(s) (if any), known as Injurious Affection;

Disturbance damages: meaning the losses, costs or expenses involved in the expropriation and for any inconvenience suffered; and,

Business losses.

The Appraiser works with you to insure all reasonable issues are addressed and quantified, for an effective submission for a compensation claim.

The Appraiser also assists in the analysis of any reports or claims by the “expropriating authority”, to counter any omissions or unsound aspects of their position.

The Appraiser is part of your “team” to make sure you receive adequate & appropriate compensation.

For a free consultation or proposal:

• Call (519) 432-2232 and speak with one of our representatives
• E-mail us at info@ottoandcompany.com
• Click Price Quote to request a quotation.

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