Buying, Selling & Determining Value: How are Appraisers Estimating Values with the Lack of Comparable Sales Data Today? by Scott R. Maesel | Executive Managing Director, Sperry Van Ness | Commercial Real Estate Advisors. Presented at GreenPearl Events' Distressed Real Estate Summit Chicago on May 13, 2010.

1. Moderator:
Scott R. Maesel, Executive Managing Director,
Sperry Van Ness, Commercial Real Estate Advisors
Panelists:
Gary K. DeClark, MAI, CRE, FRICS, Managing Director,
Integra Realty Resources, Inc.
Evan Gladstone, Executive Managing Director,
NRC Realty & Capital Advisors, LLC
Jules H. Marling, III, Managing Director,
Real Estate Research Corporation (RERC)
Cherin L. Mooradian, MAI, ASA, Director, Duff & Phelps, LLC

3. Distressed Real Estate Summit
Buying, Selling & Determining Value
Valuation, a Crystal Ball
How are appraisers estimating values with the lack of comparable sales
data today? Brokers listing prices? REO or non-performing loan prices?
Are there different values, or a range of values for a seller needing to sell
quickly (market price or spot sale price) versus higher price which
might be obtained over a much longer timeline (intrinsic value)?
What is more important in establishing value in today’s market –
market value or deal transaction value? How do they interface? How
much is financing or lack of it effecting value?

4. Distressed Real Estate Summit
Buying, Selling & Determining Value
Is it appropriate to model a rent spike in the future when preparing a
discounted cash flow model today on an investment grade property
when commercial rents continue to decline?
To what extent, if at all, does the brokerage community contribute to a
downward spiral of property pricing?
To what extent, if at all, does a third party purchase of a defaulted
mortgage at a discounted price influence that property value?

5. Distressed Real Estate Summit
Buying, Selling & Determining Value
Real Estate Taxes, They’re Killing Me!
How are owners successfully obtaining real estate tax relief as the value
of their properties have declined in value?
How can property be reasonably valued if the real estate tax burden is
many times largely unknown?
Does a market value appraisal conclusion for real estate tax purposes
really have any semblance to a market value conclusion in the
traditional sense?
If my property's assessed value goes down, why do my taxes not?

6. Distressed Real Estate Summit
Buying, Selling & Determining Value
What are the federal and local tax opportunities
that will help me:
Keep my distressed property?
Survive the recent economic downturn and work through the
recovery phase of the economy?
Assist in bringing an acquired distressed property back to
stabilization?
What do experiences with tax appeals indicate relative to the
perspective of tax assessors and tax appeal boards?
What is the role of a tax consultant?
?

7. Distressed Real Estate Summit
Buying, Selling & Determining Value
When to Hold’em & When to Fold’em?
Given a distressed marketplace for the foreseeable future, is 2010 a time
to sell?
Should this decision be different for different asset classes (hotel, multi-
family, office, etc.) or asset quality (A, B or C)?
Hold versus sell. Should owners in distress consider selling if their
lender is willing to do a short sale or negotiate a work out if their lender
agrees if the property is not cash flowing, or will not cash flow even as
restructured?

8. Distressed Real Estate Summit
Buying, Selling & Determining Value
If the restructured loan creates some cash flow now but increases
principal or requires recourse, does it makes sense?
Lenders are insanely busy today. Short of missing mortgage payments
or other covenants, how do owners get their lender’s attention and
successfully negotiate with them?