Appraisal Articles 2018 Free Appraisal Articles for Appraisers and the Public
The current proposal to do away with the mortgage interest deduction on homes purchased in the future may negatively affect the market value of homes. Home buyers in the Las Vegas area are spending $ 300,000 or more to purchase a new home and most have only 10% to 20% down, so their mortgages are substantial. A buyer who is going to take on that new say $ 250,000 plus dollar mortgage has in the past expected an annual interest deduction of around $ 10,000. For many home buyers a mortgage interest deduction has in the past been significant and it was relied upon to bring down their taxable income. Their deduction has been relatively large for most, even with relatively low interest rates near 4%, and it has helped bring down taxes in each and every year a buyer paid on his or her mortgage. Many people don’t realize that interest rates over the past few years have been extremely low, so the deduction while still large for most, would be much larger to new borrowers if interest rates
Appraisers generally want to know what a potential client needs before they give them a bid or quote on the appraisal of a property. After I know a property address or the Assessor’s Parcel Number (APN) I look it up on the Clark County Assessors website to see just what kind of property I’m being asked to appraise. There is often an aerial view of the property, ownership information, a deed from its past conveyance and at times even an Assessor’s sketch of the building. Short of visiting the property before bidding, which would bcostly, the Assessor’s information is useful. I often have to explain to potential clients that my assignment fees relate to the number of hours that it takes me to complete an assignment it has nothing to do with value. It could happen that a 300 acre vacant land parcel with a $ 30 Million market value has an appraisal assignment fee that is lower than that required for a 5,000 SF retail or office building on a 1 acre site with a $ 1,000,000 market value.