"It defies belief that property owners could not have been aware," says one source who himself heard of valuation discrepancies as high as 20%. "Very simply, if you are a sophisticated property owner, you know everything about the properties that compete with you. Assessments are all a matter of public record. It's hard to believe you would not be suspicious of an assessment lower than yours on a building situated similarly to yours."
Another assessor who works in Manhattan says he's witnessed valuations with discrepancies as high as 50%. "We've lost business over the years because we tried to do things the right way," he told GlobeSt.com under condition of anonymity. "The city turned a blind eye toward the undervalued assessments but delayed legitmate firms that tried to work within the system."
"Considering the length of time that the alleged pattern of bribery took place and the widespread nature of the situation throughout Manhattan and other boroughs, one would be hard-pressed to believe that the scandal is limited only to consultants and occurred without the knowledge or perhaps the acquiescence of property owners," another source reflected.
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John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
