Municipalities are consistently confronted with the important task of collecting all the appropriate information to make decisions about real estate. Whether it is to secure national or provincial infrastructure spending; to build, replace, or repair existing infrastructure; or ensure special projects are initiated effectively and efficiently, municipalities must undertake these complicated (and sometimes difficult) decisions to ensure prosperity for their citizens. Due to the importance of these decisions, it is vital that the right expertise and experience is engaged in the decision-making process.

Real estate decisions should always be based on comprehensive research and analysis. This aptitude is found in designated appraisers, either on municipal staff, or outsourced from a reputable firm. Through municipal department initiatives, appraisers are called upon to ensure that real estate projects succeed at both the residential and commercial level by promoting responsiveness, accountability, and transparency. In short, whether it’s urban planners, lawyers, engineers, senior managers, or other municipal staff, appraisers are used to assist the municipality in making decisions that affect where the residents live, work, play, learn, and shop.

Below are examples of different areas of local government services in which appraisers can offer their expertise.

Acquisitions and expropriations – Municipal acquisition and legal departments are constantly engaging valuation services from internal non-fee staff, as well as external fee-based appraisers, with regard to purchasing various real estate interests that are required for municipal purposes. These interests can involve portions of land or entire properties, vacant parcels, and improved sites. Examples include:

• appraising a parcel of suburban development land for a future fire station;
• estimating the value of above-grade and subterranean/underground lands for light rail transit expansion;
• providing market value for the partial acquisition of an apartment complex that is adjacent to the city’s new arena site; and
• conducting a study on the impact of road closures and how this will affect certain properties’ access and assigning a value to this impact.

Property taxes and assessment – Fee appraisers are often contracted by municipalities to do studies on cap rates and market trends. The results of these studies are considered when completing mass appraisal valuations.

City-wide planning – Planners often use appraisers to obtain a market valuation of lands involving municipal reserves, land exchange, the purchase or sale of lands, or the subdivision/development of lands.