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Articles by July, 2016

Appraising Small Motels

by Administrator on Jul 7, 2016 ROOT 4019 Views

Small motels are often owner operated without national affiliation and while challenging they are not as daunting as there much larger franchised limited and full service big brother operations. Appraisers understand that motels are valuable because they generate income and they are usually analyzed as "going-concerns," and all three approaches to value are of course considered. Small motels are usually older facilities at least they are in my market. Newer motels here are usually larger than the 10 to 30 unit roadside motels that are disappearing or already gone from many communities. There are some of the small operators who are still hanging on, but it’s a smaller and smaller group. Larger facilities can offer common area amenities like a large reception area, breakfast, conference rooms and some even have restaurants and / or retail areas.

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Banks Play MIP Loan Extortion Game

by Administrator on Jul 26, 2016 Mortgage / Financing 597 Views

As an appraiser I get contacted periodically by homeowners who are trying to get out from under their mortgage insurance premiums (MIP). On FHA loans the 1.75% of the base loan amount premium is hefty, especially if you bought a home with a loan over $ 200,000. A mortgage insurance payment on a $ 200,000 base amount at 1.75% is $ 3,500 annually or $ 292 per month. Banks are now playing an extortion game with borrower since for FHA loans they point to a "5 year" rule and they tell their customers that they don't have to release them from the MIP during the first 5 years even if their loan-to-value ration falls below 78.0%.

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Using Maps, Photos, Aerial Photos, Satellite Images and a Sales Database

by Administrator on Jul 28, 2016 Business Operation 742 Views

I admit it I have been spoiled by having access to digital information like GIS maps, online aerial photographs, online deeds, online zoning maps and Google maps. Many appraisers now have access to critical information on their local real estate markets close at hand. A few computer searches and an appraiser can zoom down and see details about a property and usually most of its onsite improvements, they can look at its title history and some can even review the most recent deed recorded on a property. Some county Assessors have developed exceptional sites that rival and even exceeds those available at the national level like trulia.com and Zillow.com.

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Appraiser Video Consultation Online

by Administrator on Jul 28, 2016 Business Operation 619 Views

Why not have an appraiser video-chat resource online? We may not be doctors or mental health therapists but we do have a skill set and we can provide a valuable service to those who need to know about the supply and demand for properties in our local market area for example. We can also explain to interested parties willing to pay details on topics like; fractional interests, eminent domain / condemnation, cell tower valuation, billboard sign value, mobile home park / recreational park valuation and a wide range of other specific specialty areas. Why take time away from working on reports and do it for free when you can get paid for doing it online?

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