Vacant Investment Properties in Tertiary Markets: A Difficult Property Tax Situation

| October 18, 2016

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When an investment property loses the majority or its entire tenant base, there is no question that its appeal, and hence value, is negatively affected. This is further amplified when the property is located in a tertiary market. The problem we face as valuators is that the majority of investment property sales of vacant buildings are motivated sales, many of which are bank repossessions referred to as “forced sale” by the appraisal community. The challenge with “forced sales” is that they do not meet one of the tests of the pure definition of “market value,” whereas implicit in the definition is that both the buyer and seller are not influenced by “undue stimulus.” That said, our view is that when a marketplace is flooded by forced sales or bank sales, it does pull the market downwards as sellers that are not influenced by undue stimulus are forced to discount their prices due to buyers having access to other properties offered on the market at lower prices.

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Tilcon Connecticut Inc

Tilcon Connecticut, Inc. is a top supplier of crushed trap rock, sand, gravel, asphalt, and concrete in the State of Connecticut and has been for nearly 100 years. We carry a complete line of CTDOT and commercial materials perfect for any project – highway, parking lot, driveway, and more. Tilcon Connecticut, Inc. is also a leading contractor for asphalt paving services to CTDOT, municipalities, and commercial enterprises.

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Tilcon Connecticut Inc

Tilcon Connecticut, Inc. is a top supplier of crushed trap rock, sand, gravel, asphalt, and concrete in the State of Connecticut and has been for nearly 100 years. We carry a complete line of CTDOT and commercial materials perfect for any project – highway, parking lot, driveway, and more. Tilcon Connecticut, Inc. is also a leading contractor for asphalt paving services to CTDOT, municipalities, and commercial enterprises.

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