Appraisal Articles 2019 Free Appraisal Articles for Appraisers and the Public
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by Administrator on Feb 8, 2016 • Market Conditions Articles • 1877 Views
Of course they can given the right circumstances, but as some homeowners discovered in the Las Vegas area boom in 2007 if your home increases in value by 100% it's difficult to take advantage of the increase because the entire market has likely increased by a similar amount. So unless you are moving to another area your gain is a relative one. It's not difficult to imagine a situation where you find that your home value increases by 20% or more but the overall market also increased by 20% or more and if you sell it to move up, to buyer a better or larger home, you will have more money in your pocket but you may be farther from the amount that you needed as a down payment for the upgrade and farther from the income requirements to qualify for the new loan.
by Administrator on Feb 9, 2016 • Investing • 809 Views
How do you know that the property that you are considering or that you have in escrow is a good deal? If you are an active investor in the real property market and you have considerable experience, especially if you are working with your own funds, maybe you don't want or need an appraiser’s opinion. There are a group of investors who have decided that they will sink or swim based on their own decision-making. You can’t fault these investors they don’t need an appraisal before they make a purchasing decision but they generally end up dealing with an appraisal when they try to get their deals funded.
by Administrator on Feb 9, 2016 • Multi-Family / Apartment • 2494 Views
While the sales approach often provides a reliable indication of market value for multi-family properties, often focused on a price per apartment unit of comparison basis, appraisers often favor the income approach. Why? Because multiple family properties are usually bought and sold by investors who expect a market return on their investment. Who invests $ 1,000,000 in a 20-unit building and doesn’t expect to receive a market return on their money? Investment returns in the market change over time and of course for any specific property they are based on risk.
by Administrator on Feb 9, 2016 • Appraiser Education • 1784 Views
Which appraisal “issues” are important has a lot to do with perspective. If you ask real estate agents, they will tell you resoundingly that the biggest appraisal problem is that their appraisal reports conclude values that are not high enough. Agents argue that appraisers don’t consider the most recent sales so appraised values come in too low and disrupt their market negotiated sales. The central theme of the agent argument is that appraisers cannot be right if they haven’t validated their deal and called it market value. What real estate agent don’t consider is the fact that if left to their own devices real property prices would increase with every sale and quickly become out of control. We have been there and done that before and those booms have always ended badly. Appraisers have been forced into the role of gatekeeper by banks who prefer that appraisers draw the line in the sand since they have failed miserably when attempting to do it in the past.
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