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The Benefits of Doing Similar Appraisals

by Administrator on Nov 4, 2015 Business Operation 384 Views

Appraiser's recognize the huge benefits that can be derived from taking new assignments that are similar to those already completed.  If you or your firm recently completed an appraisal assignment on a 10,000 square foot industrial building located on the north side of town, for example, and an owner with a similar sized industrial building located a mile away gives you his assignment, you can find yourself in situation that appraiser's long to be, the double payment zone.  You have maybe 50% of the work for 100% of the compensation.  

Most appraiser's understand that if they have already developed all of the market and submarket information, the comparable sales and an income approach for a similar property then they are already 50% or more of the way towar the completion of the new appraisal.  The savings are considerable and appraiser's can benefit even more when there are multiple assignments.

Clients who order multiple parcel appraisals realize that a savings should be passed along to them when the appraiser benefits from doing similar groups of properties.  How much of a discount should be give for redundancy, what is reasonable, is an appraisal business management decision.

Some appraiser's focus on a single property type to benefit from not having to continually research in several markets.  If for example you become an expert in vacant land you can keep up with almost every new offering and almost every new sale.  You don't have to work on office buildings for a while, switch to retail centers and then check into industrial buildings after a two or three month break from doing one.

Since redundancy benefits appraisers there is something to be said for proactive marketing of appraisal services yet few appraises actually persue assignments that way.  If you appraise a motel, and put in all of the time and effort to complete the assignment and become current on supply and demand factors, why wouldn't you market your appraisal services to other motel owners?

Real estate agents often specialize in one property type while appraiser's are often generalists.  That likely has something to do with fees.  Appraiser's have to be able to accept the next assignment whether it's on an apartment complex, an auto service center or a RV park.  It is challenging to refresh your knowledge of multiple markets but it is also rewarding.

There are many appraiser's who specialize in specific property types like golf courses, ski resorts, gaming properties and bowling alleys.  If the fees are large enough and you can build a clientele large enough being an appraisal specialist can be a lucrative decision. 

Appraiser's need to make the most out of their ever changing demands and be proactive through marketing.  We often don't think about the fact that we have just brought ourselves current on a specialized property type to do a single property.  It seems to me to be a waste of appraisal effort to not take at least attempt to take advantage of the opportunity of being current on one or a group of property types by using some direct mail or email contacts.

For more appraisal information contact Glenn J. Rigdon MA, MRICS, ASA is a Las Vegas / Henderson Nevada based appraiser who can be contacted via email or via his business website known as Appraiser Las Vegas  (http://www.appraiserlasvegas.com), or you can also click on “Contact Us” on the home page of this website or visit my public profile at LinkedIn at http://www.linkedin.com/pub/glenn-rigdon-ma-mrics-asa/1a/30b/879/

Article source: http://www.appraisalarticles.com/General-Appraisal-Articles/General-Appraisal-Articles/Business-Operation//4579-The-Benefits-of-Doing-Similar-Appraisals.html

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