Appraisal Articles 2019 Free Appraisal Articles for Appraisers and the Public
Appraisers always come back to valuing partial interests or fractal interests in real property because there are so many properties that end up having a number of undivided interests (tenancy in common). So appraisers end up asking the same question, what is a fractional interest in the property that I am appraising worth? Like most appraisers I have read and collected many of the fractional interest valuation articles published over the years. Many relate to specific studies that deal with partnership sales, business interests and partial stock conveyances and not with real estate interests.
If you have taken the time to search you may already know that there are a lot of articles out there on the web regarding fractional interests. So, what do appraisers do when faced with having to develop an appropriate discount for their assignment? If a property suffers no loss due to a lack of marketability and no loss due to a lack of control, due generally to owning a minority interest in a property, then discounting it may not be appropriate. A joint tenancy interest in a property may mean that you only own a portion of the whole, but claiming that your interest should be discounted is tenuous at best.