By combining our extensive experience and excellent results in high-value, multi-regional tax negotiations with solid data and analysis automation tools, Tax Recourse, LLC. performs a detailed analysis of real estate valuations and builds a case for value reductions where warranted. The process includes:
Equal and Uniform Appraisal – Many states allow a protest based on equal and uniform appraisal. Regardless of the value supported by the purchase price, cost of construction, income, or other value indicators, an argument can often be developed based solely on the assessor’s lower per unit valuations of similar properties.
Income, Market and Cost Approach – Direct capitalization or discounted cash flow methods are used to estimate value based on a property’s income generating potential. Special care is taken to arrive at a value based on the fee simple value vs. the leased fee value, which often is used by assessors to support a higher valuation. Market transactions are identified and adjusted to arrive at a value based on sales comparables. Cap rates are derived and converted to a fee-simple basis for accurate valuation based on comparable sales. Cost estimator programs are used to determine replacement costs for a building and all forms of obsolescence (physical, functional, and economic) are then quantified to produce a value estimate.
Modeling – Based on the previously discussed valuation methods, Tax Recourse, LLC. will develop your Company a portfolio valuation model that is applied to the entire portfolio to generate value variances compared to the assessor’s value. This modeling will identify overvalued as well as undervalued property and allows for a systematic, prioritized attack on excessive valuations.
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