"as-is" Value Of Site Improvements

[CANative]

Exactly. That's why we got the 1004C and requirements to provide a dealers invoice and a real cost approach.

 

[hastalavista]

D'oh! now you're grumpy. That's what you get for hanging out with Klahr.

I'm not a slave to the form but we're talking about the form. I say it is flawed.

If flawed, then you can fix it by doing a real cost approach.

 

[Gobears81]

When I do gas station/c-stores for appealing taxes the only approach the assessor's appraiser is interested in is the cost approach.

Gas stations are one of the hardest properties to do a cost approach on, simply because of the number of itemized site improvement costs. Also, there is debate amongst assessors (around here at least) on whether USTs, canopies, and fuel dispensers are real or personal property.

 

[Eli]

Gas stations are one of the hardest properties to do a cost approach on, simply because of the number of itemized site improvement costs. Also, there is debate amongst assessors (around here at least) on whether USTs, canopies, and fuel dispensers are real or personal property.

I've done a few years ago. Gallons of gasoline pumped per time frame is one of the biggest drivers of values.

 

[Terrel L. Shields]

Gas stations are one of the hardest properties to do a cost approach on, simply because of the number of itemized site improvement costs. Also, there is debate amongst assessors (around here at least) on whether USTs, canopies, and fuel dispensers are real or personal property.

If valuing the real property, I don't find that they are exceptionally difficult, but as an on going concern they are equal to any hotel/motel valuation. But as real property, they are not all that great usually because an "orderly liquidation" is a rarity... a sale to be cherished. We see a lot of them disappear and be replaced with something else AFTER they get rid of the fuel tanks.

 

[CANative]

Gas stations are one of the hardest properties to do a cost approach on, simply because of the number of itemized site improvement costs. Also, there is debate amongst assessors (around here at least) on whether USTs, canopies, and fuel dispensers are real or personal property.

In California they are personal property and are taxed separately.

 

[Eli]

You could do some real good regression analysis on price per unit of real estate compared to gallons of gasoline pumped per time unit. It will give a good indication of value in many cases for C stores, or at least strong reconciliation support in many if not most cases. It just rhymes with C stores. The more gallons being pumped, the more stuff they sell inside when comparing similar properties.

 

[CANative]

You could do some real good regression analysis on price per unit of real estate compared to gallons of gasoline pumped per time unit. It will give a good indication of value in many cases for C stores, or at least strong reconciliation support in many if not most cases. It just rhymes with C stores. The more gallons being pumped, the more stuff they sell inside when comparing similar properties.

Yes, exactly. The first thing I check out on the income statements is the UST tax/fee. It's an easy calculation in figuring out volume.

 

[Eli]

Yes, exactly. The first thing I check out on the income statements is the UST tax/fee. It's an easy calculation in figuring out volume.

That's good. Back when I was doing a few, all I did was call the seller, buyer or agent and ask. 9 times out of ten they would tell me how many gallons they were pumping. Many franchise owners like BP or whoever will share it too. The smaller independent ones are harder to get the info from.

Traffic counts help too, but not as good as gallons of gas.