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General Appraisal

Apartment Appraisals

by Guest on Mar 14, 2012 General Appraisal 1235 Views

The research that is usually necessary to complete an apartment complex appraisal is more intense than that required for some other property types.  Appraisers have to know market dynamics.  They have to know details about comparable sales and comparable rental properties like rent concessions, finish quality and amenities that an exterior view of the complex is often not going to provide.

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Appraising Residential Subdivision Sites

by Guest on Mar 16, 2012 General Appraisal 1459 Views

Residential subdivision sites are either vacant with no improvements in place, a state that is referred to as "paper lots," in a state of partial improvement (often with just a roadway easement in place that is often gravel surfaced or paved) or it is in a "finished" state with all Improvements.  Lots that are "finished" usually have curbs, gutters, sidewalks, paved roadway access, utility services stubbed to each lot and street lights.  Appraiser must compare subdivision site sales with similar improvements and adjust for differences.

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Why Is My Appraisal Low ?

by Guest on Mar 19, 2012 General Appraisal 1371 Views

There has been a great cry from agents and their representatives that appraisers are responsible for holding back the market by artificially decreasing appraised values.  That the use of bank foreclosure sales (REOs) and short sales should not be considered.  Some attempts to force appraisers to turn a blind eye to these sales have even been made.  If considering a fictional reality is ever forced upon appraisers the appraisals and value opinions expressed would also be fictional.

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Is My Appraisal Fact or Opinion?

by Administrator on Mar 20, 2012 General Appraisal 1489 Views

As every appraiser knows, appraisal reports display how an opinion or opinions of value were developed using accepted economic principals and appraisal methodologies.  While appraisers review facts that relate to the real property being appraised and facts about;  the market (supply and demand), facts about comparable sales, replacement cost facts and facts about rental rates, expenses, net operating income and capitalization rates, the end result of an appraisal report is an opinion of value and not a statement of fact.

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Auto Service Center Appraisals

by Administrator on Mar 21, 2012 General Appraisal 1571 Views

Buildings designed and utilized for an auto related use are special-purpose industrial improvements and they have limited marketability.  Many have built in features like; power lifts, lube pits, high wall heights, grease traps, paint booths, office and reception areas.  They are not buildings that can be easily modified or changed for an alternate use.

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Appraisal Mistakes

by Guest on Mar 23, 2012 General Appraisal 1402 Views

If you know what you are looking for its not hard to find appraisal problems.  In fact, there are few commercial appraisals that don't have at least one or two mistakes.  Even when you find the rare reports with no mistakes, the data selection, weighting of the sales, the selection of depreciation rates, the selection of the capitalization rate and the size of the adjustments used are all open to interpretation.  It is after all an opinion of value.

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Eminent Domain in Nevada 2012

by Guest on Mar 30, 2012 General Appraisal 1481 Views

With announcements being made that we are in for a round of public improvement projects beginning later this year, I expect that government right-of-way takings and potentially some condemnation actions are on their way.  Most developed properties escape significant takings since the typical roadway widening, bus stop takings and traffic signal modifications don't cause affected owners major problems. 

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The Call for Appraisals to Exclude Short Sales and Foreclosures

by Administrator on Apr 6, 2012 General Appraisal 1568 Views

There has been a great deal more posted recently on the Internet about forcing appraisers to exclude short sales and foreclosure sales from their appraisal reports.  The latest arguement for appraisal manipulation is that short sales and foreclosure sales are not exposed to the market with sufficient time to garner the best price they could have, and thus this lack of exposure time is the reason that their sales prices are lower than they should have been.

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Why Create a Photo Database?

by Guest on Apr 22, 2012 General Appraisal 1489 Views

It occurs to many appraisers that creating a comparable sales database is a smart idea.  If there is a good chance that you are going to appraise more shopping centers or office buildings, put them into your current appraisal report, why not save them in a format that they can easily be resued for the next report.  Larger offices that share data depend on data sheets of this type, without them everything has to be created from scratch with each and every report.  If you cover a wide geographic area or you live in an sprawled urban area, as is the case in Las Vegas, its also important to not have to take a photo of a building that you have seen 20 times just because you failed to take a photo of it.  Along with your comparable sales "data sheet" collection you should also consider building a database of commercial buildings.

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Will Regression Analysis Solve Appraisal Forecasting Problems?

by Guest on May 5, 2012 General Appraisal 2146 Views

The big Appraisal Foundation "plan" is to move all appraisers to regression analysis competency over the next 5 years.  The reason behind this move, with its requirement for new education, is of course trying to get appraisers qualified to forecast market trends.  The question is, will all of this education solve the problems?  Once the educational requirements are in place and appraisers are competent to forecast market trends using statistical analysis / regression will the public trust be improved?

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