Book 4 - Appraisal Institute of Canada
Book 4 - Appraisal Institute of Canada Book 4 - Appraisal Institute of Canada
Member profileFrom appraiser to assessorAyear and a half ago, after performingappraisals for Revenue Canadafor almost 20 years, Rob Kotchon,AACI, assumed the position of City AssessmentCoordinator for the City of Red Deer, Alberta. “Iwanted to try something different,” he explains.Kotchon eagerly embraced his new roleoverseeing the assessment of all non-residentialproperties in the City of Red Deer. While heexpected the shift to be a challenge – and it was– he was also pleased to find that, in performingassessments, he could rely on a solid base ofknowledge he had acquired as an appraiser.Over the years, his work in Revenue Canada’sreal estate division had involved all types ofproperties throughout southern Alberta, includingcommercial, industrial and residential real estatein both rural and urban settings. The knowledgeacquired through this exposure to such a widegamut of properties is proving to be invaluable inhis new position.At the same time, Kotchon is finding manysimilarities between assessment and appraisalwork. “You are still looking at the characteristics ofa property and how it compares to other propertiesin the same market,” he explains. “Factorsstill include improvements, the pros and cons oflocation, etc. You are still dealing with owners ortenants. The basic background information gatheringis still the same.”But, he does acknowledge that there are differencesbetween appraisal and assessment workas well. Elisabeth Dubeau, CRA, agrees. As anassessor with the City of Medicine Hat, she sees thetwo practices as diverging applications based onthe same background. “Being an assessor is quitea bit different from being an appraiser,” she says,“although we use the same tenants of understandingand underlying principles.”It was her grasp of these very principles thatmade Dubeau an attractive prospect when theCity of Calgary decided to digitize its condominiumassessment information in the late 1990s. She wasworking towards her CRA designation when sheaccepted a City of Calgary job that was supposed tobe an interim position, but continued well beyondits original timeline. At that point, she was so closeto obtaining her CRA that the department felt itwould be beneficial to keep her on. Then, whenthe City launched a market value assessmentsproject, Dubeau was selected for the position ofteam leader.“The first year Calgary started using marketvalue in its calculations, everyone was appealingtheir assessments,” she recalls. On the first day inher new position, Dubeau was handed the files for26 cases and asked to represent the City in court.It was at this point she realized that, althoughthere are many similarities between appraisaland assessment work, there are significantdifferences as well. “You have the luxury as anappraiser of looking at things very minutely,” sheexplains. “As an assessor, you have to put aside alot of those and focus more on the bigger picture.You have to treat everyone as a whole, ratherthan individually. Fairness and equity are thebuzzwords assessors use all the time.”While learning to appreciate these differences,Dubeau also relied heavily on the knowledgeand expertise she learned as a CRA, includingher understanding of the internal workingsof a building, her appreciation of what motivates20Canadian Property Valuation Volume 54 | book 4 | 2010 Évaluation Immobilière au Canadaclick here to return to table 0f contents
the marketplace, and her grasp of concepts suchas depreciation and site-specific versus massappraisal valuation.Kotchon found his combination of educationand experience to be equally helpful in preparingfor the transition from appraisal to assessmentwork. The provincial assessors associationrecognized this as well. “Because I had an AACI,the Alberta Assessors’ Association granted menumerous exemptions relative to courses andexperience requirements,” explains Kotchon. “Iended up having to take only one general coursein assessment tools and legislation.”Similarly, when Dubeau was hired by theCity of Medicine Hat five years ago, she put touse the combined skills and knowledge of aproperty assessor and a CRA, including collectingdata, understanding land uses, taking informationoff new plans and doing site inspectionsfor condominiums, multi-family homes, mobilehomes, farmland and vacant land. She points outthat she finds her appraisal background to be ofparticular advantage in her work.“As an assessor, you have this wide range ofknowledge that is difficult to present in a way thatthe typical taxpayer will understand,” she explains,adding that, when taxpayers come in to challengean assessment, it is important to treat them withcompassion and empathy. “That is when I put onmy appraiser hat to see it from their point of viewand as an appraiser would.” Having gone throughthis process with them, she then finds it easier tomove on to explaining the assessor’s point of viewand the need to be fair and equitable in comparisonwith other properties.This straddling of perspectives is equallyimportant when Dubeau and Kotchon representtheir respective municipalities at the AssessmentReview Board. It plays an important role inequipping the assessors to deal with a potentiallyconfrontational situation.Kotchon finds that his experience as an expertwitness representing his former employer (RevenueCanada) in the tax court of Canada has alsobeen useful. “You not only have to come up witha value, but make sure it is defendable in a courtproceeding,” he notes. This applies not only toKotchon, but also to the two assessors who workunder him and to those working in the residentialsector. Each assessor gets a turn at going intocourt. The more experienced assessors get thecomplex cases, while the less complex cases areused as an opportunity to ease new assessorsinto this aspect of the job.At the time Kotchon was hired, the City ofRed Deer also hired another AACI who was aformer fee appraiser. “She is working with meand I am helping her make the transition to thepublic sector,” he says. “It is always more of anadaptation for a fee appraiser, however, I thinkshe is really enjoying it.”One adjustment that both AACIs have sharedis the need to think about current value ratherthan value at a fixed point in the past. “When Iwas with Revenue Canada, I was working mainlyin the past,” confirms Kotchon. “It is very differentdealing with historical information whereyou know exactly what happened in the market.With assessments, you are always looking atwhat is happening in the current market andtrying to anticipate the future.”Equipping appraisers to appreciate the differencesbetween assessing and appraising is a needthe Appraisal Institute of Canada has recognized asappraisers are increasingly finding their way intothe assessment field. “When I was going throughthe designation process, there was no talk of theassessment portion of valuation,” notes Kotchon.“That is now being addressed in order to giveAACIs an even more well-rounded education.”He adds that this move comes at a time whenthere will likely be more opportunities than everfor appraisers to find work in the assessmentfield. “A lot of experienced people are retiring,”he says. “I think there are significant opportunitiesavailable to Candidate students who arelooking at a career in the valuation profession.”In the year and a half that he has been in hisnew position, a number of his colleagues havemoved on to higher positions with the City ofLethbridge, which has left several openings inRed Deer. In the last six months, Red Deer hashired two new assessors, including anotherformer fee appraiser with a background inresidential valuation.In Dubeau’s Medicine Hat assessmentdepartment, five of the 12 assessors – includingDubeau herself – will be retiring over the nexttwo years. “I am sure other jurisdictions are in thesame situation,” she says.Assessment departments in these municipalitieswill soon be looking for employees witha solid understanding of valuation. Althoughappraisers have the necessary precepts, theycan further prepare for entering this field byfamiliarizing themselves with the legislationthat governs assessments in a particular jurisdiction.Strong interpersonal communicationskills are also important in the assessmentprofession as interaction with taxpayers isalmost always a part of the job.Kotchon notes that because of their comprehensiveeducation and training, appraisersare well placed to consider assessment asa career option. “If you have an open mindand an appraisal background, it is not a bigstretch to educate yourself in the assessmentside of things,” he says. One has to look nofurther than Kotchon and Dubeau to see thisreality in action. For these appraisers – andmany others – the assessment field is provingto be an attractive way to pursue a career invaluation.click here to return to table 0f contentsCanadian Property Valuation Volume 54 | book 4 | 2010 Évaluation Immobilière au Canada 21
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Member pr<strong>of</strong>ileFrom appraiser to assessorAyear and a half ago, after performingappraisals for Revenue <strong>Canada</strong>for almost 20 years, Rob Kotchon,AACI, assumed the position <strong>of</strong> City AssessmentCoordinator for the City <strong>of</strong> Red Deer, Alberta. “Iwanted to try something different,” he explains.Kotchon eagerly embraced his new roleoverseeing the assessment <strong>of</strong> all non-residentialproperties in the City <strong>of</strong> Red Deer. While heexpected the shift to be a challenge – and it was– he was also pleased to find that, in performingassessments, he could rely on a solid base <strong>of</strong>knowledge he had acquired as an appraiser.Over the years, his work in Revenue <strong>Canada</strong>’sreal estate division had involved all types <strong>of</strong>properties throughout southern Alberta, includingcommercial, industrial and residential real estatein both rural and urban settings. The knowledgeacquired through this exposure to such a widegamut <strong>of</strong> properties is proving to be invaluable inhis new position.At the same time, Kotchon is finding manysimilarities between assessment and appraisalwork. “You are still looking at the characteristics <strong>of</strong>a property and how it compares to other propertiesin the same market,” he explains. “Factorsstill include improvements, the pros and cons <strong>of</strong>location, etc. You are still dealing with owners ortenants. The basic background information gatheringis still the same.”But, he does acknowledge that there are differencesbetween appraisal and assessment workas well. Elisabeth Dubeau, CRA, agrees. As anassessor with the City <strong>of</strong> Medicine Hat, she sees thetwo practices as diverging applications based onthe same background. “Being an assessor is quitea bit different from being an appraiser,” she says,“although we use the same tenants <strong>of</strong> understandingand underlying principles.”It was her grasp <strong>of</strong> these very principles thatmade Dubeau an attractive prospect when theCity <strong>of</strong> Calgary decided to digitize its condominiumassessment information in the late 1990s. She wasworking towards her CRA designation when sheaccepted a City <strong>of</strong> Calgary job that was supposed tobe an interim position, but continued well beyondits original timeline. At that point, she was so closeto obtaining her CRA that the department felt itwould be beneficial to keep her on. Then, whenthe City launched a market value assessmentsproject, Dubeau was selected for the position <strong>of</strong>team leader.“The first year Calgary started using marketvalue in its calculations, everyone was appealingtheir assessments,” she recalls. On the first day inher new position, Dubeau was handed the files for26 cases and asked to represent the City in court.It was at this point she realized that, althoughthere are many similarities between appraisaland assessment work, there are significantdifferences as well. “You have the luxury as anappraiser <strong>of</strong> looking at things very minutely,” sheexplains. “As an assessor, you have to put aside alot <strong>of</strong> those and focus more on the bigger picture.You have to treat everyone as a whole, ratherthan individually. Fairness and equity are thebuzzwords assessors use all the time.”While learning to appreciate these differences,Dubeau also relied heavily on the knowledgeand expertise she learned as a CRA, includingher understanding <strong>of</strong> the internal workings<strong>of</strong> a building, her appreciation <strong>of</strong> what motivates20Canadian Property Valuation Volume 54 | book 4 | 2010 Évaluation Immobilière au <strong>Canada</strong>click here to return to table 0f contents
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