Appraisal Articles 2019 Free Appraisal Articles for Appraisers and the Public
Are land foreclosures really pushing values back to the stone age in Las Vegas? Do the Press "statistics" really match up the reality of the market?As a vacant land appraiser I keep reading the news articles and thinking "where is all this cheap land the Press is talking about at $ 190,000 or less per acre in Las Vegas?" If you are reading Mr. Wargo at the Las Vegas Sun, he just spews out what this analyst of that broker says about a specific sale or the averge price per acre of vacant land for whatever quarter he is reporting on.
How do loan modifications affect the market for single-family homes? What do appraisers have to consider when many loan modifications are occurring? The Las Vegas market is seeing a lot of loan modification activity since many homeowners want to hang on to their homes even though they are in financial trouble. Bankruptcy and the rental route are not appealing to many owners especially those who have put a great deal of work into making a home their own. Before the recession the work was often called "sweat equity" because the work often added value to a home, however since many are now upside down with negative positions of $ 50,000 to $ 250,000 the term no longer makes any sense.
While things are changing in the Nevada real property tax world the changes are not always fair for everyone. I have been asked in 2010 by clients "why are my real property taxes increasing in Clark County, Nevada when property values have been falling?" Investigating these claims I have found that while some individuals and corporations have seen 40% tax decreases in 2010 others have seen 8% or higher increases. You may ask yourself how this can happen when tax assessments and tax payments are supposed to be applied equally.
If you think that you are qualified to complete an appraisal assignment, you may find that the client does not agree with you. I have been in the appraisal business since the late 1970's and there are specialty appraisal areas, like the appraisal of casinos, that I have little experience completing. I do not represent to potential clients that I am qualified to complete casino assignments and I try to disclose my lack of experience as soon as I can in a conversation. There are however other specialty areas that I do feel competent with since I have completed a number of them in the past. For example I have completed a number of golf course assignments over the years. While I have completed only a few over the past few years the methodology has not changed, and I am confident that I could produce a credible golf course appraisal.
The state of the Las Vegas land market in 2011 is dismal from an appraisal perspective.Let me preface this short article with a notice that I have no claim to be an all-knowing, all-seeing land expert. My statements reflect my limited experience (25 years in land related work and 14 years in Las Vegas), and I am sure there are parties (biased and un-biased) who don't agree within anything that I write. Also, I know some individuals personally who could make money buying and selling land even if it was verified that the sky was falling.
I am sure that you have found as an appraiser that there are times when market data leads you to a conclusion that you did not anticipate. At times the tried and true methods provide you with a basis for forming a value opinion but when you have completed that analysis you just don't believe where the data is leading you. These are the times that your results fail your "reasonableness" standard, and you have to take a closer look. Questioning my results seems to happen to me more often today when appraising Las Vegas commercial real property than at any time in the recent past. Why? Because the data is heavily affected by foreclosures, REO sales and short-sales. There have been quarters in the Las Vegas market in which the sales of some property types (like sales in the vacant land and office market) have included over 50% "foreclosure affected" properties
by Guest on Feb 3, 2012 • General Appraisal • 929 Views
A tax assessment is a government assigned figure that property taxes are based on. In some "ad valorem" states an assessment is related to market value and it is determined or established by analyzing comparable sales and cost data. In other states, like Nevada, assessed values are based entirely on cost estimates. An assessed value is usually a portion of a property's "taxable value" which is the Assessor's estimate of full value. In a large metropolitan area an Assessor often uses "mass appraisal" techniques / computer models to assign taxable values to each property. Assessed values, taken from the taxable value estimated, are multiplied by tax rates to determine their taxes.
by Guest on Feb 3, 2012 • General Appraisal • 1199 Views
Church properties (AKA religious facilities) can have a variety of improvements that can include properties with a single multi-purpose building improvement on them that could easily be converted to a "for profit" use or they can have a special-purpose sanctuary buildings with spires, bell towers and fifty foot plus wall heights and have absolutely no possible alternate use. In my experience most church properties are designed for their special-purpose use and cannot be easily converted.
by Guest on Feb 4, 2012 • General Appraisal • 890 Views
As of February of 2012, regardless of what is being talked about in the press, it is clear to me that our markets are still in a deep hole. All the warm and fuzzy feelings that you may have about "positive" employment statistics, upward trends in obscure indices or the power of positive talk doesn't change the fact that our real property markets today are still bouncing along near their 4 to 5 year activity and price lows.
by Guest on Feb 7, 2012 • General Appraisal • 998 Views
Its a mistake to assume that commercial zoning is always a land value enhancement. Few experienced market participants consider zoning to be the most important factor influencing real property value.
Common sense tells us that most commercial endeavors require accessibility and visibility from a high traffic roadway or roadways. Its important to understand that zoning doesn't always make a poorly located property more desirable. It will provide an owner with more development options or flexibility however if the property is best suited to a residential or industrial purpose it's commercial zoning adds nothing.