The Client’s Situation
Stephanie was introduced by a financial advisor to a 92-year-old landowner who required an Opinion of Value for estate and tax planning purposes. Her husband had passed away the year prior, and together they owned approximately 200 acres along Highway 400, located within a recognized growth area.
The land had been in the family for over 180 years, making the request both financially and emotionally significant. Although the upfront request was to determine value for tax planning, after a thorough discovery conversation, Stephanie could see that the goal was not necessarily to sell, but the family wanted to understand the current value of the asset, what future planning to the area was shaping up to be, and providing the backdrop to a bigger picture so that they could make better long term decisions, not just solve the tax planning request.
The Challenge
– Establishing a current and defensible market value
– Separating land value from residential value
– Understanding zoning and planning status
– Supporting estate and tax planning
– Avoiding unnecessary tax exposure
– Factoring in the local political changes that were imminently impacting the subject properties
– Respecting the family’s long-term connection to the land
Our Approach
Once the client formally engaged Maven Commercial Real Estate’s services, Stephanie worked closely with the client and her accounting advisors to understand the purpose of the valuation and the specific requirements involved. She also spoke with the client’s family to better understand any other dynamics to address in the report.
This included clarifying how the valuation would be used, reviewing property dynamics, area dynamics, and ensuring the client clearly understood each component of the process.
Market Analysis & Due Diligence
– Comparison to developable land in similar growth areas
– Comparison to active agricultural properties
– Confirmation of current zoning despite planning discrepancies
– Review of long-term potential with and without speculation
The Valuation Report
Stephanie prepared a comprehensive 24-page valuation report that included market data, zoning confirmation, clear value breakdowns, and thorough supporting documentation for a strong defensible position.
The Outcome
The document became a guide by providing clarity to the landowner, direction to the accounting team, and confidence to the landowner’s family that their mother wouldn’t be in a position to be taken advantage of. The client was able to be slow and pragmatic in her decisions following the loss of her husband whom she had been used to making decisions with for the previous 70 years! Not only was the report relied upon by accountants, CRA, and legal advisors, but it set the bar for neighbouring farmers interested in a conversation who broached the idea about a future sale. Trust was born in that time and the door opened for ongoing discussions as more questions surfaced.
Key Takeaway
The right valuation is not about pushing for a direction or a decision, it is about providing contextual information that ultimately gives clarity on multiple issues from multiple perspectives.
