When the System Misses: Why Assessments Don’t Always Match Reality

Episode Summary

In this episode, Attorney Nora Devine sits down with Bob Becker, a seasoned Illinois commercial appraiser, to break down the cost approach to property valuation—a key yet often misunderstood method used in property tax appeals. Bob explains how this approach differs from the sales comparison and income methods, when it’s most useful (especially for special-use properties), and the biggest challenges appraisers face when applying it. Together, they explore real-world examples—from farmland to libraries—and discuss how external factors like construction costs and local market data can influence property tax values.

This conversation sheds light on how assessors, taxpayers, and attorneys can use the cost approach more effectively to ensure fair assessments and better outcomes in Illinois tax cases.

Key Timestamps

00:30 – From farmland appraisals to complex commercial valuations across Illinois. 02:00 – How it differs from sales and income methods. 03:30 – Why special-use properties rely on the cost approach. 05:00 –  Issues with land value and depreciation accuracy. 06:30 – Physical, functional, and external obsolescence. 08:10 – How airport noise caused external obsolescence near O’Hare. 09:30 – Methods used to estimate land value when data is limited. 11:00 – Why the cost approach isn’t always the highest value. 13:00 – Limited sales data south of I-80 and heavy reliance on cost models. 15:00 – How cost manuals and valuation data keep up with market changes. 17:00 – Key focus areas when defending or challenging a cost approach in hearings.

About the Show

Devine Intervention: Shedding Light on Illinois Property Tax helps Illinois property owners understand how property assessments work—and how to ensure they’re fair. Hosted by Attorney Nora Devine, a seasoned property tax attorney with statewide experience since 2005, each episode features industry professionals who share insights on valuation methods, assessment trends, and legal strategies that can save taxpayers money.