Appraisal Articles 2018 Free Appraisal Articles for Appraisers and the Public
If you are an appraiser or mortgage lender who is new to Las Vegas / Henderson Nevada you may want to read on, because there are many who don’t understand which segments of the Las Vegas / Henderson market currently (in 2017) and in the recent past have seen the most sales and generally generate the most appraisal assignments. I’m going to work from my own (primary) sales data collected from various non-proprietary sources and while not 100% complete it includes a relatively large number of market sales and it is believed to be a good indicator. I have grouped property sales into the following categories; vacant land, office (which includes medical office), retail, industrial, apartment, hospitality and other. There were relatively few properties found to fall in the hospitality and other area and the other area was excluded from the following graphic.
It doesn't take an education in real property to figure out that there is a relationship between the number of acres for sale or sold and the sold price per acre. Vacant residential land generally falls into loosely described strata that include; user home sites, small multi-lot sites, subdivision sites and large or master plan community sites. In the Las Vegas residential land market for example if you are buying a small property, like an acre or less, you are likely buying a home site for current or future development, and you will probably pay the highest price per acre of all residential land buyers. Individual home sites are relatively difficult to find in Las Vegas and Henderson, NV because builders develop homes on their own home sites. So, unless you are looking for a site for a custom home you will find small lots hard to find.
Concluding conflicting value opinions using different appraisal approaches is just part of the appraisal process, it happens often. I have analyzed properties and had all three approaches come together in unity, but more often than not they don’t, and I have to make sense of them and reconcile my conclusions. The question that appraisers have to ask themselves, and discuss in their reports is “do these analytic differences make sense?” It’s obvious when a building is clearly overbuilt (due possibly to super-adequate improvements) and the cost approach reflects the atypical replacement costs, there should be a difference in that instance. It’s also easy to spot a difference when a rental rate from a subject property is much higher or lower than the market rate and the income approach provides an atypical result.
It's amazing how many different types of appraisal assignments that I am offered an opportunity to bid on, many that I am not qualified to complete, over a few months period. Appraisal bid queries that I receive can range from simple Single-family residential (SFR) appraisals to billion-dollar Las Vegas Strip resort properties. I also get calls to bid on watches, art, diamonds and related items. I guess that’s due in part to my ASA designation. You name it and I have been asked to bid on the appraisal of it whether it's an RV Park, a timeshare condominium building or a golf course. Appraisers have to be able to estimate how much time an assignment will take to complete and consider how much effort is going to be required to produce a credible result. Some real property appraisal assignments require an appraiser to buy new or updated reference books, some require subscriptions to data sources and some require multiple trips to areas where similar properties have been sold. Depending