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General Appraisal

Will Building Energy Disclosure Laws Affect Real Property Value?

by Guest on May 15, 2012 General Appraisal 1313 Views

Of course the answer to the question "will building energy disclosure laws affect real property value" is yes.  There is no doubt in my mind that inefficient buildings,  like gas guzzling cars, will be shunned by real property buyers and building tenants when they have the opportunity to see the results on energy disclosure reports.  In the recent past few buyers have paid a great deal of attention to annual energy costs since energy costs have been relatively low.  

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The Challenge of Getting Paid for your Appraisal Assignments

by Guest on Jun 9, 2012 General Appraisal 1361 Views

When you think about the gas, vehicle wear and tear, research time and other costs associated with completing an appraisal assignment that are lost if the assignment is cancelled without a retainer most appraisers simply won't take the assignments that you don't feel that you have a good chance of being paid for.  For a small one or two appraiser office losses from hard costs and lost time can be devastating.  You simply can't eat those reports that start filling your bookcase.

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Appraisers as Targets

by Administrator on Jul 6, 2012 General Appraisal 1449 Views

I'm sorry to admit it but I find it funny when I hear about how some appraisers are finding new and innovative ways of ducking residential assignments from AMCs, banks and lending institutions when they see that the value they are looking for is at the high end of the market range or beyond it.  "I'm sick," "their is a family emergency," "I think that I'm related to one of the parties," "I am leaving town" and the list goes on.  It's sad that as appraisers many of us have reached a point when we have become the targets of owners and real estate agents who want to control appraisal outcomes.  

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Asking Price versus Sales Price

by Guest on Aug 21, 2012 General Appraisal 1469 Views

From an appraiser’s perspective, the asking price of a comparable or competitive property may provide some indication of market value, but it is not evidence that anyone was willing to actually purchase the property at that price.  Real estate agents constantly point to asking prices as if they were market evidence, and yes, at times it is, but agents often tell their clients when they list a property to push the last, highest pending sale.  Owners want the most that they can get.  It’s common sense that the next seller up will push the value achieved from the last sale and pending deal.  Thus there is a de-facto, built-in, upward asking price bias in most real estate markets. 

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What is a "Speculative" Highest and Best Use?

by Guest on Oct 22, 2012 General Appraisal 2601 Views

Let me qualify my statements regarding this issue, I am not a state regulator, a text book writer / editor or an appraisal educator.  Having said that, it is my opinion as a commercial appraiser that saying that the highest and best use of a real property is for "speculation" is a bad idea, it is just asking for trouble.  Most real properties, at least in urban areas of Nevada, are subject to a land use plan and many of those have been placed in some zoning category when a zoning ordinance was implemented.  Even properties in rural areas that have no planning or zoning ordinance in place generally have some development potential for either a residential, industrial or commercial use depending on the availability of roadways, railroads, utilities and surrounding land uses.

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Las Vegas Land Values 2013

by Administrator on Nov 30, 2012 General Appraisal 1393 Views

As a land appraiser in Las Vegas / Clark County Nevada looking at sales activity in December of 2012 I am seeing the similar dichotomy develop in almost every submarket area, the average sales prices per acre are still near their 6-year lows and most asking prices are dramatically higher, higher than any closing price seen for years.  The psychology of owners seems to be effectively saying, "most of us want higher prices" but only the select few who are willing to or forced to part with their property at recession affected prices become closed transactions.

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Why Having More Divided Parcels Does Not Always Mean More Money

by Guest on Jan 25, 2013 General Appraisal 1035 Views

Clients ask me whether a parcel of vacant land that they own should be divided, without incurring the substantial cost of a full blown subdivision, into a few or several smaller parcels as may be allowed by the City or County government.  They point to valid comparable sales and say, "Why not sell multiple parcels at the higher price per acre?"

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Rose Colored Appraisals

by Guest on Jan 28, 2013 General Appraisal 1406 Views

Like most appraisers I try to keep up with the latest market statistics and I read the "business" press, the university forecasts and real estate brokerage reports.  It's interesting to read reports over and over again about how the Las Vegas economy is "improving," about how it's just a matter of time until the recovery really kicks in.  It's the ridiculous "if we build it they will come" theory twisted by the press into "if we write it (or promote it) that will make it so." 

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Real Property Expense Analyses / Expense Ratios for Appraisers

by Guest on Feb 1, 2013 General Appraisal 1600 Views

Not all appraisers have access to a great real property database that includes hundreds of properties and a wide range of property types that can provide
income and expense detail, but even those appraisers who can must often take a hard look at expense information because there is a lot of variability from one property to the next.

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Appraising the 99 Year Lease

by Guest on Feb 20, 2013 General Appraisal 1954 Views

Long-term leases are often negotiated between parties when securing a fee interest is not possible, and appraisers are often asked to value either the underlying real property, the leasehold or the leased-fee interests.  When a landowner wants to benefit from an expected strong appreciation associated with a property they often will not sell it but will establish a lease that compensates them for appreciation.

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