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Appraisal Articles is an Internet website dedicated to providing free information in the form of artices on appraisal and real property / real estate topics to appraisers and the public.  Authors are invited to contact us and submit related original articles for approval. 

Ground Leases and Building Leases

by Administrator on Jun 26, 2015 Commercial Leasing 6 Views

Establishing ground lease rates and / or commercial building lease rates in a lease that will continue to remain reasonable for both an owner and a tenant over the long-term is a difficult task. As the Economist for the Arizona State Land Department’s Commercial Leasing Section back in the 1980’s I was part of a team that attempted to establish long-term rates on vacant properties for several State-owned properties, and while I did not remain to see it I am sure that every one of the leases that I helped to establish eventually required a renegotiation.

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Why are Commercial Appraisals so Expensive?

by Administrator on Apr 28, 2015 Real Estate 70 Views

It is my opinion that appraisers try first and foremost to bargain for a reasonable compensation for their time. Most appraisers know what they need to pay their monthly bills and they know what their appraisal volume is assuming that the market for their services is moderate to strong. Single-family residential (SFR) appraisals within tract home developments in Las Vegas, Nevada typically command a fee of about $ 350 since many of these reports take only a few hours of travel and a few hours of form completion to complete. When these same reports are done in a rural setting with hours of traveling required or when property sales are few and far between the assignment fees can be considerably higher.

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Appraising for Divorce Settlement / Litigation

by Administrator on Apr 20, 2015 Litigation / Expert 71 Views

While appraisers are in most circumstances seeking market value, usually we are using the same definition of value the purpose of the appraisal can be radically different. In some cases the appraisals are for civil litigation, condemnation, contract disputes, deficiency judgment disputes, probate, bankruptcy and in some cases the appraisals are for a divorce. Appraising real estate for divorces is at times one of the most contentious of the lot since it is a husband, wife, attorneys and usually their families who can't stand to be in the same room together for 5 minutes without becoming emotional. If you have done this kind of work before you know that the yelling, screaming and unruly gestures sometimes spill into waiting rooms, hallways and elevators. While you want to be there to defend your appraisal report in court the circus atmosphere that develops can be a challenge.

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Do Larger Homes Sell for Less Per Square Foot?

by Administrator on Apr 18, 2015 Residential Appraisal 55 Views

If you restrict that question by saying "if the home is in the same subdivision with the same quality interior finish" then the answer may be yes. You can get a better buy per square foot in some subdivisions just by buying the larger model. The problem with the generalization is that larger homes in different subdivisions often have a different quality of interior finish. Larger homes with a higher quality of finish may sell for a much higher price per square foot.

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Aesthetics, Health, EMF and ROW Taking Remainders

by Administrator on Apr 11, 2015 Eminent Domain / Condemnation Appraisal 47 Views

The effects of transmission lines and their easement or easements on vacant commercial land value have been a subject studied by many including EMF scientists, academics using econometric models, by small town real estate agents and even by real estate appraisers. The easements established for most transmission lines disallow the construction of commercial building improvements beneath them. There's a fall zone for the steel towers or poles within the easement area. Parking lots and landscaping are however generally allowed within power line easement boundaries. So appraisers consider how much of a negative impact there is on value when a commercial site is partially or entirely affected.

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