The Southern New Jersey Chapter Welcomes You

Solar photovoltaic system installations are continuing to increase as the price becomes more feasible in the many markets. Appraisers will find the valuation a challenge without knowledge of the technology and data available to use the methodology most appropriate. Appraisers must expand their knowledge base to understand how electricity is priced, how solar PV is priced, and how solar PV functions to develop a credible value. If you are seeking education that will hone your skills or teach you new ones, this is the course for you. Residential and commercial appraisers will work together to apply an income capitalization approach and cost approach to valuing energy produced for solar PV systems. All you need is a tablet or iPad, with Internet access, and you’ll be able to use free software to value the energy that solar systems produce.

Trends Affecting Our Local Appraisal/Assessing Industry

Sponsored by the Southern NJ Chapter of the Appraisal Institute

REGISTRATION DEADLINE:  April 12th

Register online or CLICK HERE to download a PDF registration form.

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2:30 PM    Registration begins

3:00 – 5:00 PM

Various Assessing Topics
Presented by Richard J. Carabelli, Jr, MAI, CTA, Martin Appraisal Associates, Inc. & Mercer County Board of Taxation, President and Commissioner and Cliff Moore, Monmouth County Board of Taxation, President and Commissioner

Current State of Abatement
Presented by Carlo Batts, MAI, Rittenhouse Appraisals

5:00 – 6:45 PM

Networking/Dinner/Chapter Meeting
Presentation of designation certificate to Sherrie Lisa Galderisi, SRA

6:45 – 7:45 PM

A View from the Bench: Reviewing Tax Court Issues & Recent Cases
Presented by Judge Joseph M. Andresini, P.J.T.C.

** 7:45 PM  SNJ Chapter of the AI Board of Directors Meeting (All are welcome!)**

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Various Assessing Topics brings 2 experts of the NJ tax boards to present important information. This includes defining the tax board and noting its powers and duties. They will also review a CTB appeal/value procedures, relaxing the rules, dismissal without prejudice, the importance of USPAP and non-licensed expert witnesses. They will answer these questions: Who has standing? Can an assessor be forced to testify? What questions can a commissioner ask? The information presented will be VERY helpful to appraisers and assessors!

Current State of Abatement will review local current pending legislation which deals with the use of tax abatement. We will also discuss land use issues and the way these developments are being processed. Focus will be on current local issues and what’s to come in other municipalities.

A View from the Bench: Judge Andresini will discuss tax court issues & recent cases from across the state. His insight and experience will be a great benefit to all.

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Richard J. Carabelli, Jr, MAI, CTA is president of Martin Appraisal Associates, Inc. He has experience in appraising residential properties, multi-family dwellings, commercial, industrial, income producing properties, vacant land, condemnation, and contaminated properties. He is also an expert in municipal revaluations, reassessments, compliance plans, and special assessment review. Mr. Carabelli also serves as the Mercer County Board of Taxation President and Commissioner. He is also President of the NJ Association of County Tax Boards and a member of the Tax Assessor Continuing Eligibility Board.

Cliff Moore serves as the Monmouth County Board of Taxation President and Commissioner. He also currently serves as the Economic Community Development Coordinator for the Borough of Keansurg, and is the President Emeritus of the Northern Monmouth Chamber of Commerce, where he continues to serve on the Executive Board of the chamber. He also served as the Co-Chair of the Hazlet Business Owners Association’s Economic Development Committee.

Carlo L. Batts, MAI is the Principal of Rittenhouse Appraisals; a regional commercial real estate valuation firm based in Center City Philadelphia. Carlo has been appraising commercial real estate for over ten years and has been involved in the real estate industry for over twenty years. He is licensed in NJ, PA & Delaware. Carlo’s education includes a B.S. in urban planning and real estate urban land development from Virginia Commonwealth University.

Joseph M. Andresini, P.J.T.C. took the oath of office as presiding judge on January 16, 2018. Judge Andresini began his time with the tax court in October 2009. Prior to that, he served as a Municipal Court Judge in the Borough of Haworth. He earned his Jurist Doctorate from Seton Hall School of Law in 1984.

If you’re involved in the valuation of commercial real estate, it’s crucial to know how the terms of a lease affect value. This NEW seminar goes beyond methodology to explore how to measure a property rights adjustment, the theory underlying the use of a leasehold yield rate (Y_LH) to value the leasehold, as well as the application of a property rights adjustment in all three approaches to value.

Topics include:
• How the terms of a tenant’s lease impact value—either positively or negatively
• Situations that require a valuation of a leasehold
• Methodologies in valuing a leasehold, including examples and exercises
• The impact of a leasehold in the valuation of property using all applicable approaches
• Challenges facing appraisers performing leasehold valuation assignments

The technological advances of the last 10 years have caused a significant change in the real estate appraisal profession. For example, today nearly all databases are computerized; it is imperative that appraisers easily retrieve, list, and analyze large quantities of data. During this hands-on seminar, participants will use Microsoft Excel to develop a spreadsheet skill set that includes the use of thousands of the program’s applications. By developing spreadsheet skills that report statistical analysis and provide graphic illustrations, appraisers will have additional professional skills to meet the needs of a more diversified client base.

NJ Appraiser Law, Regulations N.J.S.A. 45:14F-1, et seq. Real Estate Appraisers Act This course is required by NJ regulations every two years. Students will learn about the law itself, the regulations that pertain to the law including specific areas noted in the regulation. Provide general information about the law and regulations Provide some information about national licensing Understand how NJ State Appraisal Board works. Explore misunderstood areas of Laws and Regulations Discuss commonly found errors and issues (appraisals) Provide references sources and information for licensees.

This program is intended to review, inform & assist appraisers who practice in the state of Pennsylvania about the Real Estate Appraisers Certification Act, Chapter 26 of the Rules & Regulations, Act 48 Penalties Imposed Against Appraisers and Recently Completed Disciplinary Actions.

This one-day update course, copyrighted by The Appraisal Foundation, focuses on recent changes to USPAP requirements for ethical behavior and competent performance by appraisers. The course, which clarifies several commonly misunderstood aspects of USPAP, will aid participants in all areas of appraisal practice seeking updated competency in USPAP, including those subject to state licensing or certification and continuing education requirements imposed by professional organizations, client groups, or employers.

NOTE: Appraisers must successfully complete the 7-hour USPAP Update Course every two years to meet the USPAP continuing education requirement.

NOTE: This is 1 of 4 courses being offered on June 10th & 11th.

• Click here to register for all 4 courses
• Download a printable PDF course description and registration form

 

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Seminar Objectives

This program will focus on developing and communicating credible and supportable evaluation appraisal services. The program will focus on minimum requirements outlined in the Interagency Appraisal and Evaluation Guidelines. This is the core document that practitioners must adhere to when providing this appraisal service. This program will expand specifics within that document to a related publication, the Uniform Standards of Professional Appraisal Practice.

The program will span the entire process from what is an evaluation, guidelines for requesting an evaluation, who can prepare evaluations, to the development and reporting requirements outlined in the Guidelines. The program will assist practitioners on how the appraiser can provide an evaluation and comply with the current edition of USPAP. Appraiser compliance with all relevant guidelines and standards is primary to providing credible assignment results.

Handout: Brief syllabus & student handout

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Outline

10 minutes  

• Introduction
• Overview of the program that will define an evaluation appraisal service, its purpose, and when a client may request this appraisal service.

15 minutes  

Inform the audience that the basis of an evaluation service rests in the Interagency Appraisal and Evaluation Guidelines that were issued on December 2, 2010. This is the core document that appraisers need to follow when completing evaluations. The discussion will extend to aspects of Uniform Standards of Professional Appraisal Practice (USPAP).

15 minutes  

Discuss the parameters that clients are to follow when requesting an evaluation. These parameters span real property assignments for residential and non-residential lender-client value related questions.

10 minutes  

The Interagency Appraisal and Evaluation Guidelines expound upon who can prepare evaluations and the responsibility of both the appraiser and the client. Clarity of the appraiser’s role is essential for the appraisal community to fulfill and meet the needs of lenders in performing evaluations.

10 minutes    Break

20 minutes  

Overview of the development requirements outlined in the Interagency Appraisal and Evaluation Guidelines. These requirements span both the lender and the appraiser. This section will address the specific areas within the development requirements outlined in the Guidelines. The areas pertinent to appraisers include: possibility of a property inspection (actual or third party source); effective date of value; base line property description; and valuation methods.

5 minutes   

The Guidelines require support for adjustments among which overtly cited are economic and market conditions. What is meant by market support will be addressed. The Guidelines also stress avoiding using any unsupported assumptions.

20 minutes   

Overview of the reporting requirements outlined in the Interagency Appraisal and Evaluation Guidelines. These requirements are specific to the appraiser. Address the specific areas within the reporting requirements outlined in the Guidelines. These areas include many areas which are also addressed in the minimum requirements outlined in USPAP for all appraisals. They include property inspection, location, description, actual physical condition, use and zoning, methods and techniques, analysis, and sources of information and supplemental information.

5 minutes     

Reference and stress that a Restricted Appraisal Report as presented in USPAP is not appropriate for communicating an evaluation. The format may be modified to meet the  minimum requirements outlined in the Guidelines.

10 minutes   

Define what is meant by a competitive sale and introduce the ten elements of comparison in any comparison analysis.

Sales Comparison Approach Review

10 minutes   

Summarize the five (5) transactional and five (5) property specific elements of comparison, the order of presentation and which is done sequentially and/or cumulatively in the analysis.

10 minutes   

Exchange of ideas about how to develop adjustments will be encouraged as well as discussion of pier tested and industry expected techniques. Examples of these adjustments are presented.

10 minutes   

Discuss the other transactional adjustment elements of: (1) condition of sale; (2) expenditure upon acquisition, and (3) market conditions. Review core concepts and provide examples if such adjustments are necessary.

10 minutes

Present the rationale for the property specific adjustments and that these adjustments may be done cumulatively. Examine the use and presentation of physical characteristic subsets.

10 minutes

Review strengths and weaknesses of quantitative and qualitative analyses. Introduce the  concept of weighting a sale and which sale or sales should be given primary emphasis in a final correlation of the data.

10 minute      Break

Income Capitalization Approach Review

10 minutes

Discuss and review the various components within a pro-forma operating statement.

20 minutes   

Overview of the concept of a pro-forma and the capitalization process. Emphasize the need for market support for each component of a pro-forma by identifying a property’s strengths and weaknesses to command rent, address vacancy and expenses, and capitalizing net income.

15 minutes  

Succinctly connect the rationale for a property’s strengths and weaknesses to direct capitalization, development of an overall rate or multiplier or range of these elements.

5 minutes   

Emphasize the need to reconcile throughout the development of the Income Capitalization Approach.

10 minutes    Question & answer period

 

NOTE: This is 1 of 4 courses being offered on June 10th & 11th.

• Click here to register for all 4 courses
• Download a printable PDF course description and registration form

 

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Seminar Objectives

This program will assist the attendees in gaining a better understanding of the strengths and weaknesses of the real estate, either man-made or naturally occurring. Valuation nuances will be addressed, especially when the Subject and/or the competitive sales involve limited utility features. USPAP establishes minimum requirements for an appraisal and the practitioner’s need for competency will be stressed. The program will offer insight into recognizing, understanding, and evaluating physical characteristics and legal controls that impact many assignments. It will be stressed that a practitioner should seek to exceed the minimum requirements thereby better serving their clients and intended users.

The program will review industry approved and peer tested methods and techniques when encountering unique features. Knowing what to look for when inspecting a property or reviewing third party data such as zoning maps and MLS fact sheets will enhance the use of tools available to the appraiser to answer a client’s question. The goal is for attendees to gain insight into property nuances. Better understanding should result in a better analysis that leads to supportable conclusion(s) and opinion(s). This will be accomplished by:

• Recognizing the measurement utility which ultimately impacts value.
• Recognizing that appraisals are not simply to justify a deal on the table.
• The practitioner must possess and is responsible for evaluating his/her own competency.
• Identify and summarize different types of limited utility features that may be encountered.
• Stress that market evidence is required to support opinions and conclusions.
• Suggest techniques to evaluate the critical issues noted in a property.
• Discuss the differences between excess and surplus land.
• Recognize the need for a well documented and supported highest and best use.
• Briefly discuss how critical issues are addressed in all three approaches to value.
• Stress the need for reconciliation throughout the appraisal.

To be credible, an appraisal should be well documented using applicable market data relevant to the client’s appraisal question. Data needs to be factual. The skill to identify critical features rests with the appraiser and education and experience are core underpinnings of competency. Today, there are various software programs available to assist the appraiser but they do not replace the need for well thought out analysis. The depth of support often lie in the extent of the critical issue within the property being valued. Every appraisal may be challenging and it’s the appraiser’s responsibility to be ready for the challenge. Critical features impact the real estate’s use and appeal in the market to varying degrees. It is the valuers task to identify such features and evaluate how, if at all, they impact value.

This program will challenge both new as well as seasoned practitioners. It will be a guide to a meaningful understanding of features that impact real property rights and value. Concepts discussed will be consistent with the intent of Uniform Standards of Professional Appraisal Practice and Interagency Appraisal and Evaluation Guidelines. This educational program will assist the certified, licensed, and registered appraiser to gain a better understanding of how the typical buyer develops a price to be paid.

A rudimentary understanding of appraisal theory is expected. The topics and general discussion within this program will facilitate attendees in gaining a better understanding of when and how critical features impact use of real estate and ultimately the prices paid. A better understanding should lead to reasonable and credible opinions. A better understanding benefits both the practitioner and their clients while strengthening the industry and protecting the general public. Educational awareness is enhanced by an active presentation format which involves attendee participation and the use of straight forward examples. A safe environment will be fostered to encourage questions, test accepted procedures and find alternatives when needed.

Handout: Brief syllabus & student handout

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Outline

5 minutes

• Introduction
• Overview of the program

10 minutes

• Examples of strengths and weakness encountered
• Challenges in improved and land valuation assignments
• Types of limited utility areas

15 minutes

• Appraisal principles
• Assumptions and Conditions
• Components of a market

10 minutes

• Benefits and offsets of critical issues
• Markets for limited utility land

10 minutes

• Physical characteristics of the underlying land
• Overview of legal controls

10 minutes    Break

5 minutes

• Strengths enhance value while weaknesses may detract from value
• Prices paid reflect all component parts.
• The task: identify and quantify contributory values within the whole.

15 minutes

• Competency is essential in all valuation assignments
• Definition of wetlands and terms commonly used to describe wetlands
• Factors contributing to wetland formations

10 minutes

• Detention ponds are man made while creeks and tributaries are natural occurrences.
• Guidelines to determine wetlands
• What is a 404 Permit and who issues them?

10 minutes

• Types of wetlands
• Tidal and non-tidal wetlands

10 minutes

• Flood plains and FEMA maps
• Overview of hydric soils – major and minor inclusions

10 minutes    Break

15 minutes

• Example using Arcview software – technology to define physical characteristics
• Availability of GIS information in county assessment offices
• Using it to help define the physical real estate.

10 minutes

• Use of Extraordinary assumptions and/or Hypothetical conditions

10 minutes

• Surplus land and excess land

15 minutes

• How to allocate a sale price to quantify strengths and weaknesses
• Understanding the concept of utility and how it is related to value.
• Examples when estimating utility and density potential

10 minutes

• Summation of concepts discussed in the program

Question and Answers

NOTE:  This is 1 of 4 courses being offered on June 10th & 11th.

• Click here to register for all 4 courses
• Download a printable PDF course description and registration form

 

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Seminar Objectives

The program focuses on developing a sound market analysis that supports the highest and best use conclusion. It is accomplished by an inferred demand market study that is used when valuing commonly traded properties in a stable market where sales and rentals occur routinely. This program is relevant for both residential and general appraisers. All appraisers are expected to gather, research and analyze market information using peer tested and industry approved methods and techniques. An inferred market study is applicable for many types of residential and non-residential properties in various communities throughout New Jersey.

Market analysis precedes and supports the highest and best use conclusion(s) which extend into the three approaches to value and the reconciliation. This short program will help attendees prepare and communicate more effectively findings upon which analyses are based by understanding what areas should be researched, data to gather, and analysis to undertake regardless of the appraisal report’s communication format.

This program will offer techniques to rate and evaluate the property’s appeal in the market. The process is capsulize in a six step process. The concept of market analysis is required in all assignments and is a Scope of Work decisions. It supports the highest and best use which is overtly required by Standard Rule 1-3. The current edition of USPAP focused on the responsibility of an appraiser to analyze property productivity factors. Checking a box is no longer adequate.

This educational program will be a review for season practitioners and an introduction to appraisers how to use peer tested and industry accepted techniques and procedures. The goal is achieved using interactive discussions interspersed with examples to practice and better understand core concepts. An appraiser should strive to exceed minimum standards outlined in USPAP.

The program will challenge both new and seasoned practitioners. It will offer guidance in generating meaningful market analysis that support the highest and best use conclusion. The goal is to enhance the practitioner’s skill level to prepare well documented and supported appraisal services.

The audience is expected to consist of new and experienced field and review appraisers as well as users of appraisal services. Attendees are expected to be familiar with USPAP and general appraisal theory. This allows key topics to be explored in greater detail. The program is flexibly designed to enhance communication styles and generate meaningful discussion about key appraisal issues which should strengthen the industry and protects the general public.

Handout: Brief syllabus & student handout

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Outline

10 minutes

• Introduction
• Overview of the program

20 minutes

Brief review of why market analysis is necessary and how it supports the highest and best use conclusion and its findings and conclusions are used in all three approaches to value and the reconciliation. Stress the requirements in the current edition of USPAP with a focus on Standard Rule 1-3(b) which requires the appraiser to analyze the relevant, legal, physical and economic factors as necessary to support the highest and best use conclusion.

10 minutes

Review the factors that create value and the components necessary for an actual market.

10 minutes

Discuss techniques used to measure demand and quantify supply. This program will focus on an inferred demand analysis.

10 minutes    Break

20 minutes   

Define what is meant by an inferred demand study and give a brief introduction into how its findings and conclusions are used in all three approaches to value and the reconciliation. This technique relies on projections based on the historical past and current market environment.

20 minutes   

Review the six step process, a procedure that describes the Subject, evaluate its probable use and users, quantify supply and demand factors, evaluate their interaction, and conclude an opinion about subject capture. Discuss Step 1 in greater detail.

10 minutes  

Introduce an example estimating utility. Physical characteristics and legal controls are addressed and a density template is provided to organize the analysis.

10 minutes    Break

15 minutes

Concept of rating grids is introduced and an example is provided. This tool can be used to recognize accrued depreciation and super-adequacies, evaluate buyer/user preferences, and consider risk.

5 minutes  

Step 2 discusses how a market area is determined.

20 minutes  

• Step 3 addresses the issue of evaluating demand. Elements of demand are identified and should be addressed in the appraisal report.
• Step 4 seeks to identify and evaluate current supply. Areas that comprise supply are identified and could be alternatives to the Subject. Strengths and weaknesses for both the Subject and competitive properties should be addressed in the appraisal.
• Step 5 brings supply and demand factors together. It seeks to identify if an over supply or imbalance exists.

15 minutes   

Step 6 brings the process together. It concludes how the Subject is perceived in its market and evaluates its potential for market capture. It will be emphasized that findings and conclusions developed in a sound market analysis are the underpinning of the highest and best use conclusion, used in all three approaches to value and the appraisal’s reconciliation.

5 minutes      Question & answer period.