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.
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!)**
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.
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 (YLH) 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
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
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
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
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