Library

books-thumbnaillibraryArticles & Materials Published by Federal Appraisal & Consulting LLC Professionals. Our library contains numerous resources that are free to use, including articles and reports written by the professionals at Federal Appraisal & Consulting LLC.Links to several popular titles in our library are provided below.

Tax Saving Ideas, November 2001

Federal Appraisal & Consulting LLC has compiled a list of often overlooked expenses and tax deductions that could improve after tax cash flow and pertain to the real estate industry.

Business and Cash Flow Improvement Ideas (How To), How to Improve Your Business by Managing Your Real Estate and Using Appraisal and Appraisal Consulting Services, November 2001.

Real estate represents one of the largest capital outlays for businesses. Yet few businesses have professional staff dedicated to the management of their real estate. Consequently, all too often real estate assets are not maximizing their potential yield for their businesses. Here are several actions that businesses can take to maximize their real estate investment yields and values.

Weighted Cap Rates & Taxes, by Mark Pomykacz, MAI, February 2001

This article presents a new technical, but easy to use, cost effective analysis that will reduce property taxes. It can be applied to all leased properties, including most office buildings, retail malls, and many industrial buildings, which the traditional tax assessment analysis can not analyze.

Power Asset Property Taxes, A Silver Lining!, by Mark Pomykacz, July, 2003

Utility companies are currently suffering a double body blow. They are currently suffering a dramatic industry-wide decline. And in many areas of the country, they are suffering through the negative effects of deregulation. However, while these conditions certainly have a negative impact on power asset values, the effects can be mitigated by acting to reduce property taxes. The tax manager who is knowledgeable of recent industry and assessment events and their implications can find a silver lining in property tax management. Given that property taxes are often the third largest operating expense, (behind fuel and payroll), the proper management of property taxes can substantially improve net income and thus preserve company value.

Correcting Property Taxes on High-Value Properties, The Variable Tax Rate Phenomenon in Tax-Adjusted Cap Rate Formulas

©, by Mark Pomykacz, July, 2003

It is now widely acknowledged that capitalization rates can and should be adjusted for the property tax rate, while the net income should be calculated without the property tax expense, in order to accurately estimate the market value of income producing properties, for property tax assessment purposes. However the standard property tax adjusting methods assume that the property tax rate is invariable. In fact, for high-value assets, those that represent a substantial portion of the taxing jurisdiction’s taxable base, the property tax rate is dependent on the market and assessed values of the high-value asset. Applying the standard property tax adjusting methods to high-value assets will result in over-estimated market and assessed values, but under-estimated tax rates, and municipal budget short falls. This article explains this phenomenon and presents a formulaic solution that greatly improves appraisal accuracy, and budgeting. The formula is easy to use and cost effective. It is expected that the formulas and processes presented herein will be widely used in the planning, negotiation, litigation and settlement of property tax disputes for high-value properties to the benefit of both the tax payer and the taxing jurisdiction. The taxing jurisdiction will benefit from the avoidance of previously unexpected changes to the tax rate, allowing more accurate budget planning. Furthermore, it will permit the full capture of the taxable base. For the taxpayer it will provide sound appraisal rationale for relief from under-estimated tax rates, which result in over-estimated assessments and over taxation.

Valuation and Litigation, by Mark Pomykacz, MAI, Spring 2000

Perhaps today, litigating our differences has become a normal business venue. Certainly experience indicates that even the best intentions and the most prudent management practices can offer no guarantee of avoiding litigation. Given that real estate is one of the most expensive business and personal activities, it is not surprising that subtle differences between parties lead to disputes over large dollar amounts.

Disputed real estate valuations often range in the $10 of millions and sometimes in the $100 of millions. Even leasing disputes can amount very large disputed valuations. Over a seven to ten year lease period, many aggregated lease payments will exceed the value (sale price) of the property. Furthermore the complexity of real estate valuation unfortunately leaves room for dramatically different opinions of value, rent, and damages. The scale of real estate valuations and the complexity of such valuations require the use of real estate valuation experts.

Reducing Property Taxes, by Mark Pomykacz, MAI, February 1998

It is again time to celebrate a rising real estate market. Rents are rising. Vacancy is declining. Inflation and expenses remain stable. These fundamentals are increasing values, and are increasing property tax assessments. As the real estate community turns its attention to the joys of deal making and development, the diligent will do better as they remember those still important operations efforts, such as property tax appeals. Furthermore the sophisticated will do best as they employ the full range of tax appeal tools, while many others are conceding that the increased assessments are inevitable.

Plain Language Dictionary, by Mark Pomykacz, MAI

Mark Pomykacz, MAI, has compiled a plain language dictionary of real estate terms that are commonly misunderstood. While technical and legal definitions abound in the real estate industry, there remains a gap between the highly technical expert’s understanding and the beginner’s understanding. The purpose of this dictionary is to bridge that gap, help prevent costly mistakes and to improve market performance. Mr. Pomykacz provides plain language definitions for these commonly misunderstood terms, along with real world examples and practical advice. Readers of this page are encouraged to also read the common fallacies and mistakes pages.

Common Fallacies & Mistakes, by Mark Pomykacz, MAI

Mark Pomykacz, MAI, has compiled a list of the most common fallacies and mistakes surrounding real estate appraisal and consulting. Some of these fallacies could be considered a humorous if it weren’t for the fact that they cause significant problems and cost of real estate community millions of dollars. Mostly it is layman and novices whose succumb, but all too often real estate experts also fall victim. While the real estate community does little to dispel these myths.

Survey Research Reports

Selection Of Approaches to Value for Power Plants

As the electricity generation industry shifts from a regulated to a deregulated market, valuation paradigms are also shifting. The purpose of this survey is to examine opinions regarding the most applicable method or methods to value these types of assets.