Appraisal Articles 2018 Free Appraisal Articles for Appraisers and the Public
Let me start this article with some facts about the Apex Industrial Park. There are in fact relatively few properties and even fewer owners (maybe 20) of the real properties located within the Apex Industrial Park. So Apex in point of fact is effectively a seller controlled market. There aren’t thousands of owners competing with one another to market their properties in fact it’s just a handful of people / companies. The fact that there are so few owners may in part explain the consistency of the asking prices in Apex. Anyone can discover the same ten or so Apex properties being offered for sale and their asking prices by surfing the web, but I won’t make you do that. Of the maybe 10 or so publically offered real properties for sale in Q4 of 2017 all have asking prices that fall between $ 75k per acre and $ 225k per acre with an average asking price of around $ 100k per acre.
In Las Vegas one of the first issues an appraiser has to deal with when approached to value an equestrian property is, “what is its highest and best use?” Many equestrian properties include 2 to 5 Acres of land, and the question for an appraiser is, “is the property worth more vacant or is it worth more improved?” To answer the question an appraiser basically has to complete two appraisals, one of the land, the other of the improved property including the land. It seems like common sense that the improvements would add value, and in many cases they do, but there are situations that occur when the land “as vacant” becomes more valuable for an alternate use than for an existing residential use.
Pahrump is located in Nye County and thus it is outside of the normal market area in which most Clark County appraisers do business, and many Clark County appraisers have little experience completing commercial appraisals there. Pahrump area properties range from small town, improved commercial properties, like those located along Highway 160 to remote vacant land that has fair to poor roadway access. While the Pahrump area has many dirt and gravel roads most of its roadways are relatively flat and appraisers don’t have to contend with that many steep, topographic challenges to access vacant properties. The Pahrump area has many miles of asphalt paved roadways and getting from one part of Pahrump to another is more a matter of travel time than having to deal with a topographic or off-road challenge.
It’s usually not that difficult to measure the exterior of a freestanding building, or its gross building area (GBA). The exterior walls of small buildings are often easily accessible and the GBA is considered to be the same as the net rentable area for analysis purposes. Some appraisers use decimal measurements so 20.4’ is 20 and 4/10 feet. Others use feet and inches so the measurement may be 20 feet 5 inches or 20’ 5”. You have to pay attention to what is presented by an appraiser in a sketch or drawing to see what convention he or she is using.
The American Society of Appraisers (ASA) announce that it has merged with the National Association of Independent Fee Appraisers (NAIFA) and that it’s near 4,900-member appraiser base will increase by about 700 to about 5,600. The organization will thus have about 1,400 real property members which is about 25% of its total membership. How does that compare with the Appraisal Institute (AI)? They currently have about 15,000 members, per a recent article, so ASA even with its additional real property members will have less than 10% of the AI’s. The Appraisal Institute lost 3,000 members in 2017 which is more than twice the number the number of ASA real property appraisers. Jonathan Miller has completed an article that details the recent decline in AI membership, the link is located below.
I live in Henderson and I am always amazed by how fast portions of the market change. Some of the market segments, like industrial buildings, have lagged the prices garnered in the City of Las Vegas market while other segments, like housing, has increased in value faster than many of the similar Las Vegas markets. Henderson benefits from its master planned communities like Cadence, Tuscany, Del Webb Anthem, Seven Hills, MacDonald Highlands, MacDonald Ranch, Green Valley, Green Valley Ranch, Whitney Ranch, Inspirada, and Lake Las Vegas. Some of them offer entry level housing while others have extremely high-end homes that rival the most prestigious in Clark County.
Estate appraisal assignments are usually welcome by appraisers since they can keep one or more appraisers busy for weeks or even months without their having to wait for work. When you have 10 or 15 assignments to do you don’t have to stress about where your work is going to coming from. For small firms with demanding bank or hard money clients who expect their work to be given priority a large number of additional estate assignments just isn’t going to be possible to complete. There are estates that need real property appraisals completed in multiple states, and many smaller firms don’t hold licenses in more than one or two states at a time. I have had appraisal licenses in Arizona, Nevada, Utah, Colorado, Michigan and Wisconsin, but I only have one currently active appraisal license in Nevada. So, while I can complete the Nevada portion of an estates needs I would have to find another appraiser to complete estate work needed in say California or Arizona.