There are three methods of valuing real estate. They include the cost, sales comparison and income capitalization approaches. The following are common errors found in assessed values for this property type:



 Cost Approach

o Unfair land valuation based on assessments of other sites

o Unreasonable depreciation to the improvements

o Inclusion of personal property in the real property valuation



 Sales Comparison Approach

o Using sales that include personal property and not adjusting

o Using sales of recently constructed properties for comparison to

older restaurants

o Using sales of leased fee interests and not adjusting



 Income Capitalization Approach

o Leases for new restaurants applied to older stores

o Corporate tenants are being sold at low overall capitalization rates

o Underperforming stores sometimes are paying rent above market





I have been able to eliminate double taxation and segregate the business value from the real estate for assessment purposes. Again, the intent of the consulting services is to ensure that the assessment is fair. Most savings for this property type are between 10% and 20% of your property tax bill.

Freestanding Restaurant