Wednesday, February 13, 2019

A Good "Quick Look" Office Valuation Site must be Mobile-friendly, working as an App as well

How Mobile-friendly SkylineValue.com Looks and Works as an App on iPhone
http://www.skylinevalue.com/

(Click on the image to enlarge)

Most Websites are built on the old web technology so they are not mobile-friendly, needing separate Android or iOS Apps. 

SkylineValue site is 100% mobile-friendly so it does not require any such special Apps. From your smart phone, just access internet (e.g., Safari on iPhone) and type in the URL (as shown above) as you would from your laptop or desktop and you would be using the site as if it were an App. 

SkylineValue produces simulated office valuations in 60 secs or less. Try out your own subject office property. It's totally FREE and NO login or registration of any sort is required. 80 Major Office Markets in the US and Canada are currently covered. 

Just click on the market of your choice on our homepage and follow the prompt. If you need help, use 'TRY IT' from the homepage.

What the Experts are Saying

“I checked out SkylineValue.com and I have to say that its awesome.  This is a classic case of good things come in small packages.  I was excited to see that the [XXXXXXXX] market is included.  I could see this being a very handy tool for investors, appraisers, portfolio managers or just average Joe’s who like to dabble in Commercial real estate.   For my own purposes, I selected different parts of [XXXXXXX] and different sub groups of properties and I was astonished at how much flexibility and how quickly I was able to retrieve accurate values without the need for full blown work ups.  The fact that I can get a valuation right on my device in about 60 seconds is a breath of fresh air.  I will be using SkylineValue regularly!” 
  

Tuesday, February 12, 2019

Monday, February 11, 2019

Homequant Offers Automated Valuation Modeling (AVM) for SFR Rental Portfolios

Homequant Offers QA/Review AVM for SFR to 4-Family Homes

Tuesday, February 5, 2019

How to Run a Successful (Property) Re-assessment – Preemptively


1. Ideally, Residential and Commercial Re-assessments should not be Conducted Concurrently – When they are run concurrently, local governments are empowered to shift tax burdens across property groups (depending on the impact study). If it is statutorily required, the taxpayer watch groups must fight the statute to decouple them, thus making the re-assessment a truly transparent, as well as a fair and equitable exercise. If it is run concurrently, the watch group must hire an independent consultant to review the impact study, both inter (across property groups) and intra (within the group). Should they find any inconsistency, they must share the results with the local media.

2.  Hire an Econometric Consulting Firm to Run a Pilot – This is one area where private and public sectors tend to part ways. For example, instead of rushing into a full-scale (and expensive) marketing campaign, private companies will run a meaningful pilot (i.e., proper sampling, etc.) first, leading to the main campaign (assuming, of course, pilot results exceed expectations | FYI…just meeting expectations could force the project back into the mix of alternatives). Though the idea of pilot projects is not common in local governments, they must get into the practice of running pilots, to avoid having to spend too much money at the back-end on damage control. Since a well-constructed and properly run pilot is as representative as the main event, a good econometric consulting firm is a must to do justice to the pilot, paving the way for a meaningful and significant pilot and a reliable impact study.    

3. Recollect the Exterior Data for the Pilot Project as if it were the Main Event – Before publishing the data collection manual, the consulting firm must undertake a local market significance study, thus zeroing in on the variables that significantly impact valuations in that particular market. Then, with the assistance of the consulting firm (e.g., arriving at the actual sample, variable types, extent and use of technology, etc.) the assessing staff must recollect the exterior data pertaining to the pilot. In constructing the sample, all incomplete and on-going physical changes must be ignored. Similarly, the interior data collection is virtually meaningless for re-assessment as they represent mostly lifestyle fixtures/personal properties, not real properties. While significant interior renovations and improvements must be captured and reflected via the “Overall Condition” variable, new indoor pools, porches, etc. should be separately coded to ease valuation (only if they show up in the study as significant market variables). The data collection process must be thoroughly documented so the process could be precisely duplicated during the main event.

4. Publish the Pilot Results, Emphasizing the Potential Tax Impact – Considering this is not the actual re-assessment, the results could be published immediately, with a series of outreach seminars to educate taxpayers of the potential impact of the future re-assessment. Even the taxpayers facing tax increases would be less hostile at this point as they would be allowed a major voice in reshaping the final outcome. If the residential and commercial pilots are run concurrently, watch groups must scrutinize the study carefully, ensuring that the tax burdens are not being irrationally shifted from one group to the other, especially “inter” meaning from the commercial to the residential. Of course, they must also study the equity within the group. And that, of course, is the advantage of a meaningful front-ended pilot, providing a platform for all brainstorming before the fact.  

5. Jurisdictions with Unfair Statutory Limitations must work on Removing the Statute before Undertaking any Major Re-assessment – Hypothetically, if the state mandates that the county must reimburse its taxing districts (e.g., towns) the amount that is refunded to homeowners due to inaccurate property assessments, it would be prudent for the county administration to work with the state to remove this unfair mandate (or at least reduce the burden to a manageable annual limit graduating to a total phase-out) before embarking on any major re-assessment. Should this legislative effort fail, the county should seriously consider a de-centralized assessment system, to avoid having to take on monumental unwarranted liability. In this example, under the de-centralized system, towns would be responsible for their own assessments while the county would continue to provide the technical assistance, thus relieving the county of any potential refund liability.

Again, a front-ended pilot will do immense good before the full-scale plunge.


DisclaimerThe author is not offering this presentation as professional services advice in any shape, form or manner whatsoever. Every institution is different, so seek the advice of a competent professional before making any changes to your existing program(s).

Thank you.

Sid Som MBA, MIM
President, Homequant, Inc.

Homequant Offers Benchmark Automated Valuation Modeling (AVM)

Thursday, January 31, 2019

A Good Tax Assessment System Allows Easy Comparison of County vs.Town Ratios

COUNTYWIDE SALES RATIO - CLICK TO ENLARGE
FAIRLY-ASSESSED TOWN - CLICK TO ENLARGE
OVER-ASSESSED TOWN - CLICK TO ENLARGE
UNDER-ASSESSED TOWN - CLICK TO ENLARGE
Sales Ratio (County Market Value to Adjusted Sales Price) is a better indicator of the proper assessment level than the Assessment Ratio (County Assessed Value to Adjusted Sales), as the latter often includes Town-wise special assessment, abatement, exemption, etc. 

All sales therefore must be adjusted to the taxable status date so the two values (county market value vs. sales) are comparable and the resulting ratios are statistically significant. 

In this example, since the Countywide Median Sales Ratio is .778, all Towns in that County must be valued at or close to this ratio so that the Assessment Roll becomes fair and equitable. Better yet, compare the 25th to 75th percentile of the ratio curve. If the sales are individually validated for ratio eligibility (ours are not), a much wider range – say, 5th to 95th - could be considered.

The Fairly-Assessed Town has a very similar median ratio of .768, along with the 25th-to-75th expanse of the curve.

The Over-Assessed Town however shows a significantly higher Median Sales Ratio (.877), including the short end of the curve. The lower-value homes are generally over-assessed.

The Under-Assessed Town, on the other hand, shows a much lower Median Sales Ratio (.715), including the long end of the curve. The higher-value homes are generally under-assessed.

In order to introduce statistical validation of sales, AVM Ratios (AVM Value to ASP)  may be used to identify the irrational clusters on the curve, thus narrowing the universe of sales down to a more manageable pool requiring individual validation. It's imprudent to assign equal weights to the entire validation curve.  

While this is the Town-wise summary of ratios, in a separate Blog post we will further drill down to the areas in the Town - spatially - where the incidence of over and under assessments could be more severe. 

I picked the above tables from TownAnalyst.com as I own and operate it, to avoid having to deal with any copyright issues. My TownAnalyst site is totally free (no strings) and requires no login or registrations whatsoever. Please use the assessment evaluation system that works best for you.

Thursday, January 24, 2019

SkylineValue Produces Quick-Look Value of "Trophy" Office Property in 60 Seconds

(Click on the image to enlarge)
The above graphic represents a sample valuation of One World Trade Center, a trophy office property in Downtown Manhattan (NYC). A trophy property is different from a Class-A office property in that it showcases a major city. While Class-A office properties are plentiful in major cities around the world, trophies are simply few and far between. People recognize them by their name and fame. Even in Manhattan, a handful of office properties are considered trophies. In fact, in Downtown Manhattan, the World Trade Center is perhaps the lone ranger. 

Trophies generally fetch higher rental rates - both retail (ground floor) and offices  than Class-A's in the area. They tend to be architectural masterpieces as well. Empire State Building in Midtown Manhattan needed half a billion (perhaps millions more) in rehab capital to restore it to its old glory.

I used SkylineValue.com to produce this sample valuation as I own and operate the site, to avoid having to deal with any copyright issues. The site is mobile-friendly so no additional Apps are needed. It's also totally FREE and NO login/registration of any sort is required. 

In order to value an office property on this site, all one needs to know is the general location, rentable square feet and a few general property characteristics, all of which are easily obtainable online. Once these data elements are available, users can have the system process the valuation in 60 seconds or less. 

This system is designed for the Pros and Non-Pros, offering a "Quick Look" valuation and is intended to complement the traditional valuation, not replace it. 80 Major Office Markets in the US and Canada are currently covered. 

Just click on the market of your choice on our homepage and follow the prompt. If you need help, use 'TRY IT' from the homepage. Here is the link to SkylineValue.com:


What the Experts are Saying:
“I checked out SkylineValue.com and I have to say that its awesome.  This is a classic case of good things come in small packages.  I was excited to see that the [XXXXXX] market is included.  I could see this being a very handy tool for investors, appraisers, portfolio managers or just average Joe’s who like to dabble in Commercial real estate.   For my own purposes, I selected different parts of Long Island and different sub groups of properties and I was astonished at how much flexibility and how quickly I was able to retrieve accurate values without the need for full blown work ups.  The fact that I can get a valuation right on my device in about 60 seconds is a breath of fresh air.  I will be using SkylineValue regularly!”