Rick Kenny Appraiser
The Appraisal Process starts with our team going to look at the subject property, followed by an in-depth analysis of the market and sales data within the market area. Our team would then implement the three accepted commercial appraisal approaches: The Income Approach, the Cost Approach, and the Sales Comparison Approach. Lastly, we would perform a reconciliation of the approaches to the final market value.
The Income Approach to value consists of methods, techniques, and mathematical procedures that an appraiser uses to analyze a property’s capacity to generate benefits (i.e., usually the monetary benefits of income and reversion) and convert these benefits into an indication of present value. Since most income-producing real estate is typically purchased as an investment, one basic premise holds that the higher the earnings, the higher the value, provided the amount of risk remains constant.
The Cost Approach to value is based on comparison. In the cost approach, the appraiser compares the cost to develop a new property or a substitute property with a the same utility as the subject property. The estimate of development cost is adjusted for differences in the age, condition, and utility of the subject property to generate a value indication by the cost approach. This approach reflects market thinking because market participants relate value to cost.
The Sales Comparison Approach is an opinion of market value developed by comparing properties similar to the subject property that have recently sold, are listed for sale, or are under contract (i.e., for which purchase offers and a deposit have been recently submitted). A major premise of the sales comparison approach is that the market value is based on what other similar properties are selling for in the market area. The comparative techniques of analysis applied in this approach are fundamental to the valuation process.
Across the country real estate is taxed based on an appraisal done by the counties tax assessors. Based on this perceived value, the county and city’s then tax the property owner. With the recent economic downturn that has affected the entire country most real estate values are depressed. This means that the perceived values indicated by the tax assessors is higher than the market value of the property. If this is the case the property owner can fight the tax assessment with the help of an experienced real estate professional.
Rick Kenny has been on the board of the Fulton County Tax Assessors for 6 years and served a term as Chairman of the Board for 2 years. He is fully versed in tax assessments and the best approaches to fight them for our clients. Our team is dedicated in getting our clients the fairest and best possible tax assessment. Thus lowering the taxes and potentially saving thousands of dollars a year.
6,171 total views, 5 views today