COVID-19 Update: Our appraisal team is taking on new assignments, with some changes. Find out more at www.fmappraisals.com/covid-19
Fortier Mattila Appraisals Inc. has been completing agricultural appraisals in Saskatchewan since 1971. Our team of accredited professional appraisers are licensed by the Appraisal Institute of Canada (AIC) and have the qualifications and experience required by Canadian Financial Institutions, Banks, Credit Unions and Government Authorities. Our agricultural appraisers are proficient and experienced in the valuation of:
- Arable Land (Cultivated)
- Grain Storage (Granaries)
- Muskeg and waste type land
- Pasture Land (hay/grazing)
- Yardsites including residences
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AACI, P.App (Accredited Appraiser Canadian Institute, Professional Appraiser)
The AACI designation requires an undergraduate degree, 15 real estate courses through the University of British Columbia, completion of a guided commercial or agricultural case study, two years in the Applied Experience Program and completion of both a written examination and oral interview. Individuals must also complete AIC’s mandatory Professional Practice Seminar and the introductory We Value Canada workshop. For more information see: AACI, P.App – Steps to Designation
David A. Fortier, AACI, P.App has been in the appraisal industry since 2008 and has completed agricultural assignments across western Saskatchewan for various financial institutions, government authorities, and has testified in Court of Queens Bench as an expert witness. David grew up on a grain, beef and bison operation and attended Lakeland College in Vermillion, Alberta and worked directly with Howard Mattila, AACI, P.App, PAg for several years prior to acquiring the company in 2013.
Our office has designated agricultural appraisers approved by national financial institutions and regional and local credit unions. Our accredited and approved appraisers complete work for various municipal, provincial and federal government organizations including Saskatchewan Department of Highways, Saskatchewan Ministry of Agriculture, Public Works and Government Services Canada. We also complete litigation assignments and expert witness testimony for various local, regional and national law firms. David Fortier, AACI, P.App has been qualified as an expert witness by the Court of Queens Bench (Saskatchewan) and testified in open court.
A) Direct Comparison Approach – In this approach, recent sales of similar properties are analyzed. For vacant land; location, agricultural productivity, soil quality, proximity to urban centres or lakes, are of particular importance when selecting comparable sales. In farmland appraisals a sale price per acre and assessment multiple technique are considered for land valuation. For improved properties; location, age/condition, building size, design are of particular importance when selecting comparable sales. These sales are then compared to the subject property and adjusted for differences. The adjustment reflects the likely market reaction to the difference between the subject and each of the sales. After adjusting each of the indicators a final estimate of value is determined.
B) Cost Approach – The estimated cost to construct the building(s) is/are then determined through analysis of current construction costs. The contributory value of the extra features is then estimated though a comparison of cost and market indications. An appropriate depreciation rate is developed and applied to arrive at a final estimate. The depreciated value is then added to the value of the raw land that was estimated using the Direct Comparison Approach.
C) Income Approach – In this approach, the actual and market rental revenue streams of a property are analyzed. Vacancy, bad debt and typical expenses are subtracted to estimate net operating income. Comparable sales are identified to which the relationship between sale price and income is analyzed. A market derived capitalization rate or income multiplier is applied to the subject to estimate market value. In farmland appraisals the value influence of oil and gas related surface leases are considered by analyzing the impact of leases on recent sales.
Our agricultural reports are commonly used for:
- First Mortgage Placement (Purchase Financing)
- Equity Financing (Refinancing)
- Construction Financing (Proposed Valuation and Progress Inspections)
- Re-sale purposes (Vendor pre-marketing reports)
- Capital Gains and Financial Planning (Including Retrospective Valuation)
- Litigation (Arbitration, Foreclosure, Divorce, Estate)
- Expropriation (Compensation)
- Insurance Claims (Actual Cash Value and Replacement Cost)
- Saskatchewan Ministry of Agriculture (Price Negotiations)
With offices in the Battlefords, Meadow Lake, Kindersley, Saskatoon, Prince Albert we can assist clients across northwest Saskatchewan.
Davidson north to La Loche is our general service area. If you have questions about our service area please contact our office at 1-844-937-5073.
Pricing, Timelines and Report Inclusions
Offices located in the Battlefords, Kindersley, Meadow Lake, Prince Albert, Saskatoon, results in reduced timelines, decreased mileage charges, competitive pricing, and most importantly local experts. We are proud to offer all inclusive pricing on all of our projects which includes travel, mileage, inspection, report writing and submission. Our office uses a combination of expertise, technology, and collaboration to ensure projects are completed on time and on budget. For more information on what is included in our agricultural appraisals:
Request A Quote
As the cost to complete an appraisal depends on a number of factors including location, number of quarters, outbuildings, oil/gas leases, multiple effective dates, etc – we quote each project on a case by case basis. To order an agricultural appraisal click Request Quote to complete our online appraisal request form, or you can contact our office at 1-844-937-5073.
Why get an Agricultural Appraisal?
We have been completing agricultural appraisals since 1971 for various types of clients including: grain farmers, ranchers, mixed farmers, investors, financial institutions, lawyers, government agencies to name a few. Why should you consider an agricultural appraisal?
Increased Market Values. With increasing values over the last decade very small differences in value add up very fast. A 1% difference in value on $500,000 worth of farmland is $5,000, 2% is $10,000, 5% is $25,000 – you get the picture. With bigger dollar values there is obviously more at stake.
The trouble with ‘Rules of Thumb’ You wouldn’t sell your house based on the average price of homes in your City would you? Would you sell your farmland based on a general sale to assessment ratio (assessment multiple), or average price per acre? Similarly, you shouldn’t rely on average market reports to price your farmland. The FCC farmland values report is meant to provide an overview of what is happening in general terms across the country. It is not meant to be used as a comprehensive appraisal guide to farmland valuation. Furthermore, as these values are based on certain ‘benchmark’ properties – your property may or may not be similar. Finally farmland tends to sell based on the prices paid in an immediate market area which may be a small geographic region of a few miles, or it may encompass the subject RM and some neighboring RMs – but not necessarily based on average prices for land paid between Unity and Green Lake west to the Alberta border.
Due Diligence. The most important part of decision making when it comes to real estate, financial planning, retirement planning, estate planning is due diligence. Having a professional appraisal completed by our AACI, P.App designated appraisers provides peace of mind that you did your due diligence and consulted with the experts beforehand. As we have appraisers who have been qualified as expert witnesses in Court of Queens Bench, and regularly have our appraisals used in legal proceedings – we know the importance of having a thorough, fair, unbiased appraisal reports.
It’s important to know exactly what is reasonable and realistic in today’s market. Rely on an appraisal to ensure you are accepting a reasonable amount when selling, making a fair offer when purchasing, or assigning appropriate values when completing retirement or estate planning. Our appraisal team consist of licensed Appraisal Institute of Canada members, who only complete real estate appraisals – we do not sell farmland, nor are we actively purchasing farmland – as such we are only concerned with providing a fair, unbiased professional report so that our clients can make the best possible decisions. Call us at 1-306-937-5073 or order an appraisal online at www.fmappraisals.com/request to see how we can help.