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Articles by April, 2016

Clients from Hell - How to Avoid Problems

by Administrator on Apr 7, 2016 Business Operation 521 Views

I have been working as an appraiser for many years, since about 1980, and I have had clients that have done some pretty outrageous things. There was one client who had a party meet me to exchange an appraisal for a check and instead of getting a check I got an envelope with a blank paper sealed inside it which I discovered as the party drove off with my report. That’s an unusual situation and most appraisers don’t get one of those after working in the business for decades. Most of the time I try to limit my potential loss by having an engagement letter signed and a by being paid half of the assignment fee in advance, unless it's a residential assignment in which case it's all due in advance. It is less likely that a client will not pay if they are invested and I don't mind investing my time, efforts and money into an appraisal assignment when I know a partially paid has already been made.

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Billboard Basics 2016

by Administrator on Apr 8, 2016 Billboard / Outdoor Advertising Sign 2818 Views

The question many appraisers ask is "are billboard / outdoor advertising sign structures a real property improvement or are they personal property?" Since structures are attached to the land many people logically conclude that they are a real property improvement, but they are often not deemed real property. Billboards in some states are considered real property and in other states they are considered personal property. In Nevada NRS 361.013 defines a "Billboard" as "a sign that directs attention to a business, commodity, service, entertainment or attraction that is sold, offered or exists at a location other than the premises on which the sign is located" and state law indicates that signs are personal property.

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Golf Course Conversion Appraisals

by Administrator on Apr 11, 2016 Golf Course Appraisal 1297 Views

Converting a golf course to a single-family residential (SFR) use can be an expensive proposition. Some golf courses can simply not be economically adapted for such a use, since adaptability has a lot to do with proximity to offsite improvements / utilities and if the golf course is too remote or has natural topographic features that are extreme redevelopment for a SFR use may be economically not feasible. Some golf course conversion plans can be thwarted by the lack of appropriate zoning. If the jurisdictional authority isn’t open to a zoning change that would allow SFR development again the conversion plan may fail. The local government and the surrounding community have to see the change as beneficial. “You are changing the golf course to what?” may be the comment that you get from the public.

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Large-scale Multi-Family Appraisals – Size Matters

by Administrator on Apr 13, 2016 Apartments 363 Views

When you leave the world of 2 to 4 family appraisals and even the 8-plex to 24-plex building appraisals you are looking at what could be considered a different property type. One of the things that makes them different is the importance of security and onsite management. Parking and common area amenities also become important factors for tenants and thus they are important factors for appraisers to consider. Multi-family residential (MFR) buildings provide income to their owners and while analyzing them using the sales comparison approach is important the income approach is often relied upon by buyers in the market and thus by appraisers who analyze them.

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Bringing in the Number

by Administrator on Apr 14, 2016 Market Conditions Articles 1249 Views

It’s my opinion that there remains in the mind of the public and in the mind of some real property professionals confusion about what is sought in a real property appraisal. Most people understand that appraisers are usually seeking to conclude via their analyses an opinion of market value, not a potential price, worth or simply a value. Market value definitions vary but for the most part it has been recognized as “The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress.”

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How to Make the IRS Happy

by Administrator on Apr 15, 2016 Business Operation 688 Views

While not a tax expert I have been told by an IRS examiner that my business records were some of the best she had seen. It’s not easy to put yourself in the receipt collection and data entry mode everyday but if you try to do it just before April 15th or when the IRS sends you a letter telling you it’s time to come down and talk to them there will be much more stress. I keep every receipt that I can get my hands on, I automatically say “yes” if asked whether I want a receipt and I admit to getting and holding onto many receipts that are for things that are not taxable expenses, but my theory is that if you have all of them you can sort out which expenses are business related and which are not when you prepare your taxes.

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The Benefits of Posting Online Appraisal Articles

by Administrator on Apr 16, 2016 Writing Appraisal Articles 1403 Views

Appraisal related articles posted on this site, like other article sites, end up on various search engines and authors benefit from online traffic that is directed from their article back to their own websites. Online marketing via an appraisal articles site is not as effective as having repeated personal contacts with potential customers or having an established relationship with clients already, these are the strongest connections for appraisal business. Referrals are likely the second strongest method for having potential customers directed to you. Online marketing via appraisal articles do however provide tangible results. Non-appraisers who read appraisal articles, like those posted on www.appraisalarticles.com, are usually already interested in the specific appraisal or real property being discussed in the articles. Thus they already part of an appraiser’s target audience. They find their own way to an article, you don’t have to round them up or herd them to the article, o

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Las Vegas Strip Valuations

by Administrator on Apr 18, 2016 Las Vegas Strip 1374 Views

I have discussed the valuation of Las Vegas Strip properties in the past and how that market stands alone unto itself. The Strip has its ups and downs over time as anyone who follows the news well knows, but those swings are not always in sync with the local Las Vegas / Clark County commercial real estate market. Land values on the Las Vegas Strip often run at least ten times higher than the prices being paid for the most well located off-strip parcels. Valuing land is straight-forward, you can usually find out what was paid and discover the upward or downward trend line and conclude a credible value.

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Are Home Appraisals Considered Confidential?

by Administrator on Apr 19, 2016 Appraisal Ethics 4236 Views

The simple answer to the question “are home appraisals confidential?” is yes but only parts of an appraisal report are considered to be confidential by appraisers. The Uniform Standards of Profession Appraisal Practice (USPAP) via its Ethics Rule, that is adopted by most states as law, and federal regulations like the Gramm-Leach-Bliley Act require appraisers to keep some appraisal data confidential. It is important to understand that the information is confidential to the client, and that you may think you are the client but you may not be, not if the appraisal report was completed for a mortgage company or for a bank. If the appraisal was completed for someone other than you then you may not even be voluntarily provided with a copy of it.

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Appraisal Benefits for FSBO Homeowners

by Administrator on Apr 19, 2016 Selling 407 Views

Many homeowners want to know what their home is worth before they put it on the market themselves. They don’t want to find out after they start the process that they were $ 10,000 or more too low and lost that money because they didn’t ask enough or that they were $ 10,000 or more too high and now they have alienated all of the buyers by asking too much. Checking online with the prominent online sites like Zillow.com and their “Zestimate” will make many owners question their own sanity since owners often follow the home sales in the area surrounding their home. When you see three sales of properties located on your block at $ 120 per square foot (SF) and the online valuation model says your home is worth $ 100 per SF or $ 140 per SF you are taken aback.

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