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Articles by November, 2015

The Benefits of Doing Similar Appraisals

by Administrator on Nov 4, 2015 Business Operation 649 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.

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RV Park Appraisal Data Sources

by Administrator on Nov 11, 2015 MHP / RV Appraisal 3694 Views

It's important to realize that most RV facilities consist of real property and a business entity, they are going-concerns, rental income is important but net income is also about expenses and specifically management expenses that often loom large in the expense column. One of the problems with appraising RV parks is that market data is hard to come by. The Assessor and data services often have information on only 1 or 2 sales. Ultimately you may have to accept the fact that a search outside of your immediate market area to find the data that you need for analysis is necessary. If a wider search area doesn't solve your problem you may also have to go back in time to find RV facility sales.

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Are Appraised Values Guaranteed?

by Administrator on Nov 12, 2015 General Appraisal 1715 Views

While appraiser's do their best to conclude market value opinions that are accurate they can offer no guarantee. The problem with forming a market value opinion using appraisal methods is that even if you do everything "by the book," and the same as your peers, you can conclude a different value than they do. So how does it happen that one appraiser comes up with a dissimilar result or different value opinion than that concluded by another appraiser? There are many reasons that dissimilar results can result from a similar assignment. One appraiser may have a different somewhat subjective opinion about the condition of an improvements interior and exterior finish.

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Using Third-Party Software

by Administrator on Nov 13, 2015 Appraisal Software 2263 Views

This articles site was implemented on a Subrion.com or Subrion CMS "Premium" PHP articles script. I paid for 5 "licenses" because it was represented to me that I could put up additional templates at a later date. Of course when I asked to put up another template I was told that my license only allowed additional article templates. This is not the first time that I have gone down this road. Interspire.com sold me multiple software packages for significant money and then decided that they were no longer going to support them. Before that I had a third software company that took my money and then couldn't install the site that I wanted and wouldn't refund my money because they had "invested too much time" into trying to make the site work.

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Doing Appraisals that will pass IRS Scrutiny

by Administrator on Nov 18, 2015 Property Tax Dispute 656 Views

It's not like doing everyday appraisal assignments isn't challenging enough, appraiser's all have parties who depend on the quality of their work, but doing assignments that will be reviewed by the IRS adds another level of concern. Most appraisers have nothing to worry about if they are doing appraisal assignments on property types that they are familiar with. The only real potential for trouble that an appraiser has is taking assignments that they know are bound for the IRS when they have little or no experience doing that specific property type. It's just common sense, you don't want to take your first golf course assignment knowing that it's going to end up on an IRS reviewer’s desk.

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Home Owner's Associations Good or Bad?

by Administrator on Nov 20, 2015 Buying 467 Views

I have lived in a guard-gated community with a Home Owner's Association (HOA) for about 16 years, so I'm not just writing this article strictly from an appraiser / appraisal / broker perspective but also from an owner's perspective so my opinions are colored by my own HOA and the HOA's that I have dealt with over time. My experiences has been entirely with Nevada HOA's and not HOA's in other states. I am sure that other people have had different experiences with HOA's than I have, so you are only going to get one perspective here, but I'm sure that there is a great many opinions posted online. Personally I think that there are positive and negative aspects associated with being in an HOA. The obvious benefits include; the enhancement of privacy gain by being in a gated or guard gated community. You can have community upkeep of common area pools, common area parks and you can benefit from the enforcement of a number of community rules as laid out by the CC&R document.

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How to Handle Strange Assignments

by Administrator on Nov 21, 2015 Property Appraisal 1993 Views

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

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Appraisal Services Bargains and Discounted Fees

by Administrator on Nov 22, 2015 Business Operation 539 Views

The appraisal world is a competitive one, it's relatively small in most areas and if there are 100 appraisers in a metro area or 3 in a small town and everyone has been working then demand is considered to have been good. Problems begin when market demand shrinks, like it usually does before Christmas, or when one or a group of appraisers begin bidding low in order to expand their market share. When typical demand is interrupted by seasonal swings or by low bidding appraisers or appraisal groups the market becomes disrupted. It becomes a "how low must I bid to secure employment?" question for some. These downward fee pressures can effectively put some appraise out of business, but for consumers of appraisal services strong competition can be an opportunity to get a property appraised for far less than the typical going rate.

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Imperfect Market Information

by Administrator on Nov 24, 2015 Market Conditions Articles 1838 Views

Appraiser's research the general or overall market, like the entire city, and then they research a submarket area which has often been delineated by brokers due to there being a similar development pattern in an area. While there are usually similar physical and economic characteristics in a submarket property values within it can vary considerably. If it's an area dominated by medical offices, due to its close proximity to a hospital, it is likely that the offices can vary in value significantly due to construction, in finish quality and in age. So appraisers can for example find offices that have sold between say $ 125 per square foot (PSF) and $ 350 PSF.

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Multi-Family Appraisal Reports

by Administrator on Nov 25, 2015 Multi-Family / Apartment 2902 Views

Small multi-family appraisals, on duplexes, 3-unit and 4-unit properties are usually completed on forms with standard Fannie Mae (1025), Freddie Mac (72) and HUD-92264 forms being the most widely accepted. Forms are widely accepted because they direct appraisers to collect and analyze information that a lender needs to make a loan. While forms exist for larger multi-family properties appraisers often favor a narrative format. Large-scale HUD projects and other government agencies however have specific forms and require stringent adherence to rules for completing them. Appraisers who have gone down this road know just how demanding the forms are and how difficult it is to collected to populate them.

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The Isolated Appraiser Theory

Mar 15, 2009 • 2531 Views

Investing in a New Property

Feb 9, 2012 • 2381 Views

Clark County Land Sales 2017

Sep 22, 2017 • 447 Views