Appraisal Articles 2019 Free Appraisal Articles for Appraisers and the Public
Has someone been telling you that there are too many errors and inconsistencies for you to use Excel templates? It’s a great statement if you want to get someone’s attention, but the fact of the matter is that there are thousands of people using Excel templates everyday and they don’t suffer from any problems. My experience is that if you develop your own templates you won’t have problems. If you take templates wherever you find, like from Internet sites, then I admit you may run into problems. I have found that “free” templates may have imbedded code that sends your data somewhere that you don’t want it to go.
Many investors and owners never take the time to really analyze a location. They consider the price of a parcel of land or the price per square foot of a retail or office building but many don’t take the time to draw a 1 mile radius around it and consider how many potential customers they have nearby or what their socio-economic status of the people who live there is. That’s a recipe for disaster for businesses who must survive there. In my neighborhood for example there is a huge area that is vacant, federally owned land, basically it’s a mountain that falls into the McCullough Range, and it’s like a black hole for business owners. The area where the mountain is takes up thousands of acres of land that would normally be developed with homes and apartment buildings but instead there is nothing.
It’s been about a year since the City of Henderson approved the sale of about 55 acres located north of Inspirada on the West side of Executive Airport Drive and also south of St. Rose Parkway for what will be a Las Vegas Raiders practice facility . The property closed in June of 2018 and they have broken ground on the practice facility that has been budgeted for around $ 100 million that was part of the $ 1.9 billion stadium price. Like the stadium itself, located to the north of Russell Rd. and west of Interstate 15 Highway the practice facility in Henderson will generate a lot of excitement in the coming years. For those who have located in Inspirada it’s like having a professional football team locate right in your back yard. It will be like heaven for many football fans! But I’m sure that there are some who are not really looking forward to the traffic.
The strongest vacant land sales price increases appear to have been for low-density (2 DUPA) single-family residential vacant land parcels which, in the Southwest, were estimated to have increased in price from about $ 3.91 per square foot (SF) on average to nearly $ 5.91 per SF on average based on my review of the sales data. As I have discussed in the past, it is important to note that these averages do not constitute an appraisal, they are aggregate numbers and any specific property may have a market value that is significantly higher or significantly lower than the average prices that the graphic displays. The average prices displayed do however provide a general indication of how the sales prices of vacant land in the Southwest have been moving over time in Clark County, Nevada.
Per my last water rights article I noted that one (1) acre foot (AF) of water is equivalent to about 325,851 gallons and 1 AF per year is approximately enough water to support 1 home with up to 5 people. While the water that you need for your latest project may be in the ground beneath your feet, if you don’t have the rights to take it you just can’t start to remove the water for your use. Appraisers are beginning to see the sale of more vacant land parcel without any water rights associated with them. The water rights have either been sold and are no longer associated with a parcel or there was no home site or farm with rights at the subject location in the past and the current rules may not allow a homestead a water right without the owner purchasing it in the open market. In the past, new homesteads were always allowed 1 or more acre feet to support a new home. That “free” homestead water rights is gone in some locations.
As an appraiser and a real estate broker who completes some residential assignments I get asked about the contribution of solar systems more often than you would think. While there is research on the topic, see the following paragraph, and it indicates that home values increase, there is no guarantee that your appraiser will find the same contribution that you imagine. The following is a research finding that I noted on the Internet: According to research from the National Renewal Energy Laboratory, each kW of an installed solar panel system can add $5,911 to the value of your home. The typical home system produces 4 kW of power, which would increase your home’s value by $23,644. (Source: RC Energy Solutions via the Internet at https://rcenergysolutions.com/do-solar-panels-add-value-to-your-home/)
If you have taken hundreds and hundreds of hours of often useless continuing education courses that have been required to sustain your appraisal or real estate license over the past several years you may have concluded, like me, that much of your precious time has been wasted. Like all education there is the lofty idea that keeping appraisers and agents in course will prepare them for procedural and process changes. The problem is that there are few if any changes that happen in the real estate field in a 2-year period. Like the real estate law field there are relatively few appraisal-related changes that occur in any 2-year period. So why is there the incessant 30 hours of continuing education required?