Over the past few months there was a lot of talk about the appraisals happening from Orange County Property Appraiser Rick Singh’s office. Especially in regards to the appraisals of Disney’s Yacht and Beach Club resort.
Disney had argued that that Singh had overvalued the resorts for the appraisals. And in June, the court ruled in Disney’s favor, that the appraisal was incorrect and went as far as to say that the systems used, the “Rushmore method” named after an appraisal text book author, was also not legal in Florida.
This of course was an issue because it’s a widely used system all across the country and it would open doors to other property owners, who had assessments using the Rushmore method, to attempt to get those assessments overturned. Disney is already set to oppose ten more assessments of their resort hotels. This ruling could make it seem like less of a slam dunk to other property owners.
Now the the 5th District Court of Appeals has re-examined the information and “narrowed the scope” and has revised the outcome to hold to the ruling that Singh’s office had incorrectly applied the Rushmore method, but the method itself is not illegal. However, this will likely dissuade appraisers from using the method as freely as they did.
Disney’s Appraisal
Submitted sometime during this process of hearings was a much lower appraisal from an appraiser Disney hired to give a property value for the Yacht and Beach Club. The court did reject that appraisal as well and has ordered Singh’s office to reappraise the property, I’m sure using more appropriate methods.
Hopefully they can get this whole mess straightened out soon. If I’m remembering correctly one of the aspects that came under scrutiny with the appraisal method was how it would factor in “intangibles” like “brand value” into the final value. Considering how Disney has no issue charging significantly more than other hotels, for their perceived “brand value” I didn’t see how this was a conflict, but apparently it is. Does that mean their hotel stays should be less now since their not worth as much according to their hired appraiser?
What do you think? Comment and let us know.
Source: Orlando Sentinel
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