Appraisal Matters

We get a common question from marina owners all the time that goes something like this:  how do I know my assessment is too high without paying for an appraisal?  In the upcoming January edition of Marina Dock Age, I’ve written an article on tax appealing your marina.  I’m not going to steal the thunder [...]

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Earlier, I posted an article on Marina Value in Use.  The amendment that is on the ballot in Florida is exactly what I meant to convey in that article.  We need to save the marina industry by taxing it much more like agricultural land rather than for its speculative, nebulous residential potential development.  The entire [...]

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Taking everything from the prior five posts of this series, we see that there can be a huge difference in perception between what can and cannot be built on marina land.  The problem comes when assessors view a marina site as highly buildable when in reality the marina owner knows it is not due to [...]

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Other government regulations come into play when examining the land yield (i.e. number of lots) that can be generated at a marina site.  They include zoning, zoning overlays, flood zone classification, state laws, local laws and local governmental attitude toward development.
Zoning ordinances affect marina land in two principal ways.  First, they limit certain types of [...]

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The first thing that probably comes to mind about things that limit or stifle development of a marina site is government regulation.  So why make it the fourth thing I’ve considered, not the first?  That’s because many of the government regulations kick-in and branch based on what type of soils are there and whether wetlands [...]

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The prior post addressed soils, which is one of several important components for determining if wetlands are present.  In the absence of a wetlands delineation (which can cost upwards of $30,000), we appraisers are left with having to determine wetlands and development potential ourselves -  otherwise we risk a substantially erroneous value conclusion!  As any [...]

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Of all the factors that affect the building potential of a marina site, what one factor is the most critical?  In my opinion, it’s the soil characteristics.  The soil classifications for a marina are frequently a mystery to marina owners and they are frequently overlooked by assessors.  Fortunately, thanks to our friends at the USDA [...]

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Having taken off the past two weeks from blogging to prepare for a big Court Case involving marina land, I’ve some observations I’d like to share.  With the exception of certain select areas of the country (Florida in particular), there is a very large disconnect between marina owners, tax assessors and appraisers when it comes [...]

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During the past few years of explosive growth, the highest and best use for marinas very often was NOT as a marina.  Many traditional marinas changed to mixed use or condominium developments, especially in the southeast.  Now that that the real estate bubble has burst, development is often not the highest and best use of [...]

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Conclusion

There are many decisions that need to be made for a successful tax appeal. The tax savings can be substantial. Conversely, the opportunity cost of a tax appeal that is lost due to one or more of the pitfalls outlined in this paper can be just as dramatic. When multiplied by a portfolio of [...]

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Key 9 – The Presentation

When it comes time to argue a case, you will often be faced with a time limit. Other tax appeals are scheduled for that day and if you run over, you may not be permitted to continue. You want to have the key points stressed and presented in an [...]

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Key 9 – The Quality of the Appraisal Report

In some jurisdictions, the appraisal report is not read prior to presenting the case; in others it is always read. Most State Court judges read the appraisal whereas many board level officials do not. If the appraisal is of a high caliber, is easy to read [...]

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Key 8 – Pre-Trial Preparation

Regardless of what level you will be discussing your case, your team members should, at the very least, know each other and develop a comfort level. Pre-trial preparation is where cases are won or lost. Most pre-trial preparation activities involve an appraiser. Your attorney or tax appeal personnel should provide [...]

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Key 7 – Determine Your Return on Investment

There’s a limit to what someone can spend to win a tax appeal. It can be difficult to gauge the cost when you do not know whether the case will be settled at the board level, State Court or higher. Further, when you do not know the [...]

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Key 6 – Use the Right Tool for the Right Job

Based on the type of opposition you will face above, you need to make sure you have the right professionals on your team. Although property owners can appear in front of local boards, almost all commercial tax appeals have attorneys or tax [...]

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I’m a consumer so I understand that commercial appraisals are expensive for many people. We are generally the most expensive item for a loan and certainly expensive for many estates.  It is a great leap of faith for someone to order an appraisal and not know if a "value will be made."
Again, like the last [...]

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Key 5 – Know the Opposition

Some jurisdictions use Assessors at the state level, some at the county level, some at the local level, and others hire independent appraisers to defend property values. Your strategy will vary among these four types of Assessors.

State level Assessors have case loads that tend to be [...]

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Key 4 – Always get the Assessor’s worksheet

The Assessor’s worksheet is a document that shows how the Assessor arrived at the market value of a property. Many times, the addresses of the comparable sales are included and sometimes operating expense comparables and capitalization rate comparables are shown. It goes without [...]

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Key 3 – Know Your Market and Submarkets

Although you may not be an expert, you can call upon experts to learn about your market. Brokers have their fingers on the pulse of the market and they are often more than happy to provide you with truly comparable properties for comparison, if they [...]

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Key 2 - Avoid “Protective” Appeals

In the last few years, it has become more common for clients to file protective tax appeals on all owned properties. This is a practice that can severely backfire. Many tax appeal consultants use this tactic not only as a marketing tool, touting the advantages [...]

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Key 1 – Know the Rules Before You Play
Although this may seem cliché, not knowing the jurisdiction’s tax assessment and appeals rules can derail a tax appeal well before it even has a chance to be heard. It is important to get a copy of the law and recent court cases to [...]

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With the current well-publicized real estate problems, tax appeals have become more viable for commercial property owners.  The bottom line is a lower property value, yet real estate tax assessments have not been reduced accordingly.

The Problem

Assessors throughout the country have a daunting task. They have to value a large number of properties [...]

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