Appraisal Articles 2019 Free Appraisal Articles for Appraisers and the Public
Appraisers often find themselves in situations where there are few or no current comparable sales available to analyze. They take assignments, on residential homes, commercial office buildings or vacant land parcels, and many times it's not all "sausages and roses." One of the first things Appraisers do after accepting an assignment is complete their subject property research, inspect the subject property and begin looking for comparable sales.
It doesn't happen often but if you have been an appraiser for a while you know that you eventually get some strange requests. There are always the phone calls about valuing British watercolor paintings or sword-cane walking sticks that are made by those who haven't read your ads closely on your website that clearly say "real estate appraisals" or they saw a yellow page ad and assumed that appraisers appraise everything, personal and real property. Most do not. Then there are the calls from people who want their barber shop, motel or their restaurant appraised, and they don't understand the difference between a business appraisal that includes a business entity and a real property appraisal. Business appraisals have two segments, the real property and the remaining interests that are valued as the business entity, together they are called the "going concern" and while many appraisers are capable of completing an appraisal on a going concern some have never worked on those property
As an appraiser in Nevada you can get an appraisal assignment offer that would require a 10-hour round trip drive. If you consider the fact that you will also have to find and photograph a number of comparable sales and the subject, a full day could easily be required. If you have to additionally deal with property that is located in an elevated area, like land on Mt. Charleston or sites in the Lake Tahoe area, the travel time and inspection times could easily double, and you may need a 4-wheel drive to get to the property. It's one thing to appraise a property that is located 30 minutes away from your office in the city but it is entirely something else to appraise a property that is located 3 hours away. When you get an assignment that you are licensed to complete that is five hours or more away by car it's time to consider flying and staying where the assignment is until the property, the comparable sales and the data need to complete the assignment is accumulated.
It’s an easy answer if you think about it, no. There are many reasons why the sale of a real property may be transacted above or below a price that it would normally have sold for. An appraiser assumes as part of their market value definition that there are willing buyers and a willing sellers and typical market conditions. If you find that a property considered for use as a “comparable” sold for substantially more than other properties there may be an atypical motivation on the part of the buyer. Thus the buyer may have paid more for a property because the buyer was trying to assemble a large site in fact they may already own the adjoining site. If a real property is sold below its expected market value, there could be atypical motivations on the part of the seller. Some sellers don’t want to wait for a typical marketing time they don’t want to wait for the right buyer to come along during a typical marketing time they just want to “cash out.” That type of motivation will