Preparing Commercial Tax Appeals and Studies

Learn more about how to prepare your commercial tax appeals and studies.
Jeff Weiner

Jeff Weiner

CEO & Co-Founder | Transforming Commercial Real Estate Valuation | B2B SaaS Product Innovator | Creating Amazing Software from Zero to Scale | Longevity Enthusiast

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Getting Started

Last year was my first IAAO Convention and I walked away impressed with the direction the group is heading. Specifically, with the use of large quantities of data in the mass valuation of commercial real estate. The industry has been working hard on implementing solutions for these types of valuations.

However, what is missing in the most common mass appraisal solutions is an efficient and robust way to complete individual commercial appraisals. Many of the attendees I was meeting utilize a separate system for performing this task either through spreadsheets, word documents, or a combination of both. Most often this data is being gathered and stored in systems that are difficult to standardize, share, and use.

The Missing Link

What they, and so many assessors and consultants, are missing is an integrated system that allows them to collect, store, and share data to create individual reports on a department-wide basis. That is what realquantum does. Realquantum is an industry-standard platform for commercial real estate valuation. Subscribers can do what these older platforms cannot. Simultaneously, it allows them to curate data—improve the quality, preserve it, and reuse it.

So how does it work? It starts with the property data in your CAMA system. You can upload the information from your CAMA system directly into realquantum, along with sales, leases, and income and expense data. Then in the process of preparing commercial tax appeals on individual properties, this data can be curated. Once improvements are made to the data, it is automatically available for any team member to use, making realquantum the perfect compliment to your CAMA system.

Preparing commercial tax appeals

For example, let’s say you have a shopping center under commercial tax appeal. As part of the process, the property owner has provided you with the following:

  • Current rent roll
  • Profit/loss for the last two years
  • Pro forma for the year in question
  • List of condition issues that need addressing along with their cost estimates (roof, parking lots or HVAC items for example)

With realquantum, you can tie all of this information to the property and use it as you complete your valuation. This data is easily available for use by you or your team members in any other similar commercial tax appeal. The confidential setting feature ensures that this information remains confidential in any other report that you perform. So, as you are performing your valuation on this center you are also creating a rock-solid database of shopping center data. Integrate this data with ease into valuation calculations for other centers you have under appeal.


Curating data saves time and reduces error

Realquantum also makes it easy for you to store the data you receive in the property record for future reference. Further, the prior reports and pro formas you might have used are also stored in case this property is appealed during the next valuation cycle. The property data is also a comparable for other properties in future appeals. For added efficiency in the process, you can set up appeal report templates in advance to increase consistency and reduce errors. Create templates for any property type and allow everyone in your department take advantage of utilizing them.

Moreover, the data you have been curating will be useful in the preparation of other reports that are very important in the valuation process such as cap rate studies. Let’s go back to the shopping center example. The collection of data from valuing this center and others will be available in the preparation of your capitalization rate study for this property type. Curated data is easily sortable by investment class, age, neighborhood, market or whatever search criterion you feel is necessary. This applies not just to sales information, but also includes leases and income and expenses too. The preparation of capitalization rate and other benchmark studies can be done in realquantum and with the ability for you to present it in any way you deem necessary according to your market.

If you want to dig in deeper, I have a webinar on this topic scheduled for September 17, 2020.  It’s free, live and interactive.  REGISTER HERE.

About the Author

Tim is CFO at realquantum and the president of Keller Craig and Associates, a commercial real estate appraisal firm with offices in Overland Park, Lawrence and Topeka, Kansas. Tim has been an expert witness in numerous condemnation, tax appeal, or other litigation issues. Read his bio here.

Ready to see how you and your assessors can run more successful and efficient at commercial tax appeals? Realquantum is easy to deploy with no internal IT investment required.

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