Court Testimony
Property Types

Determining the value of real estate is required in a number of personal or business situations.  The most common (but not all) are as follows.         Business Valuation:  A business with real estate holdings must separate the value of its real estate from personal property or intangible value of the business.  

Sale/Leaseback (Synthetic Lease):  The real estate being valued is new or very young and has been developed for a specific purpose.  Examples include but are not limited to:  Bio-Medical facilities, Gas Stations, Restaurants and Process Related Manufacturing facilities. The valuation is undertaken so that: (a) cash fromthe equity can be used to fund expansion of the business, (b) an accelerated depreciation can be applied to the specialty items.

MACRS/Cost Segregation: A detailed cost segregation process identifies tangible personal property and exterior improvements and classifies them into 15, 7 and 5 year life spans. This allows for faster depreciation and accelerated tax savings.

Market Analysis/ Highest and Best Use: Applied when valuing vacant land or older property at the end of its economic life. Analyzes supply and demand, competition, location factors and estimated market capture rates.  Includes a review of possible legal uses and provides a market analysis that answers questions like: (1) “What is the best use of this site?” (2) “Which of these several sites is best for this particular use?”

Dissolution of Marriage/Estate ProbateIn either situation, the value of real estate or a business is often required.  If the situation is contentious or complex, the appraiser is called as an expert witness.

Allocation of Purchase Price:  When a business is purchased, it is necessary to allocate the price paid for real estate, machinery and equipment, and intangible assets.

Bankruptcy/ForeclosureWhen a business experiences cash flow problems and debt obligations cannot be met, values are needed by all parties to aid in resolving the issue.