Appraisal Articles 2018 Free Appraisal Articles for Appraisers and the Public

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Atypical Improvements - will the Buyer Pay for Them?

by Administrator on Mar 24, 2015 ROOT 944 Views

Will a buyer pay for atypical improvements? It's a question that you have to ask yourself if you are an appraiser working on a residential or a commercial appraisal assignment and you are considering the contributory value of features that are out of the ordinary. Improvements like luxury office build-out in an industrial building or a massive heated swimming pool with a power cover, a waterfall and a spa. Owners often provide extensive cost evidence when an appraiser starts an assignment on atypical improvements they usually expect to get compensated for them and they expect the appraiser to add value for the feature or features.

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Tax Deductions / Tips for Real Estate Appraisers

by Administrator on Mar 30, 2015 ROOT 3660 Views

Just so we are clear, my only real qualification for writing this article is my recent business audit of two tax years. I’m not a tax professional and I don’t want you to think that this article is authoritative I’m just providing you with some of my thoughts and opinions regarding paying taxes as an appraiser.

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Litgation Support Case Record (Additional Qualification)

by Administrator on Jul 13, 2015 ROOT 832 Views

For a long time I used a self-created format for presenting my court experience. The format that I used was very detailed and it included information on the judge, the attorneys, the case number and the specific type of case. It was my belief that attorneys looking at my court history would want that level of detail, but I found some asking for a "standardized" presentation of the data. I asked for direction and attorneys pointed me toward a new, more summarized format. I'm not sure how long this format has been around, maybe it's been used for 20-years and I just came upon it. Either way I wanted to pass the information on to other appraisers who want to summarize their court experience for presentation to attorneys without following my route. If you have information on an alternate format I would appreciate you passing it along to me so that I can share it.

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Contingent Appraisal Fees

by Garrett Steele on Aug 8, 2015 ROOT 1023 Views

Many appraisers are asked by clients or potential clients to "work with me, you will get paid through escrow." The problem for appraisers is that it's often the case that if the appraisal doesn't "come in" in these circumstances there won't be an escrow to get paid from. It's one of those situations that appraiser's must approach with caution. If your fee won't be paid if a certain value is not reached clearly you can't accept the assignment. Even real estate developers with speculative projects have come to realize that most commercial appraisers will not invest their time and expertise and hope to get paid, they simply refuse to be put in that contingent fee situation.

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Appraising Small Motels

by Administrator on Jul 7, 2016 ROOT 698 Views

Small motels are often owner operated without national affiliation and while challenging they are not as daunting as there much larger franchised limited and full service big brother operations. Appraisers understand that motels are valuable because they generate income and they are usually analyzed as "going-concerns," and all three approaches to value are of course considered. Small motels are usually older facilities at least they are in my market. Newer motels here are usually larger than the 10 to 30 unit roadside motels that are disappearing or already gone from many communities. There are some of the small operators who are still hanging on, but it’s a smaller and smaller group. Larger facilities can offer common area amenities like a large reception area, breakfast, conference rooms and some even have restaurants and / or retail areas.

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Are Your Improvements Contributory?

by Administrator on May 17, 2018 General Appraisal 8 Views

You are going to use that new industrial building that you just purchased for indoor tennis courts, and you want to know if those improvements will make the building worth more money? Or you already purchased and remodeled an industrial build to grow marijuana, and now it’s your opinion that those grow improvements are going to make it much more valuable. The problem that appraisers confront every day is that many parties who purchase industrial buildings and then modify them for a specialty purpose believe that there is an entire market full of people out there who are interested in purchasing the modified building, with its improvements, and they believe that there are many people willing to pay a premium for the improvements.

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How Much is Your Time as an Appraiser Worth?

by Administrator on May 17, 2018 Business Operation 5 Views

If you are doing FHA appraisals for $ 450 each you know what your time is worth because if you can complete 5 appraisal assignments a week your gross is $ 2,250 X 52 weeks a year is $ 117,000 a year. Most appraisers can’t however work without vacation time or any time off during the week and most don’t get a consistent number of assignments each and every month. An appraiser who does gross that much money makes about $ 56 an hour if they were working a standard 8 AM to 5 PM day, but we all know that appraisers usually work longer hours than that. Appraisers often work weekends, usually for the convenience of our clients, and many appraisers work more than an 8-hour day but have flexible hours if they are working for themselves. So, it’s hard to make comparisons with those in normal jobs if you don’t know how much time an appraiser is putting in to earn his or her income. I sometimes find that the hourly rate that I charged someone was too low because it actually took much longer t

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When Legal Permissibility Doesn't Matter

by Administrator on Apr 7, 2018 Market Conditions Articles 60 Views

When everyone on your block has rezoned their property commercial and your property is still zoned and planned residential it’s “reasonably probable” that your property will also be approved for a commercial use. Commercial zoning doesn’t exist for the site, so clearly commercial zoning is a hypothetical condition, but for appraisers it’s not taking a giant leap to realize that uses have changed, and the use of the subject will also likely change. There are other situations in the real estate world that can test an appraisers ability to make the right value decisions. Say you are appraising a low-density residentially zoned lot that is set back off the road, behind constructed single-family homes, but large and small vacant parcels surrounding it (including the homes) have been acquired by a speculator. So you are appraising what is effectively a “spite strip” or an “island” like parcel that you know the speculator must have. It appears to a casual observer that nothing has changed

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Water Rights Appraisals in Nevada

by Administrator on Apr 5, 2018 Water Rights Appraisals 43 Views

Once you leave the city and get away from the main, municipal and County water service providers you find out just how valuable water is. If you have a property that is 40 acres in size but you have no water rights or water service you usually have a single home site. You may have zoning that will allow 20 or 40 homes on it but if you can’t provide them all with water you can’t develop the property for all of those homesteads. Water rights are even more important to properties with commercial or industrial zoning, because those properties can never be used for their zoned or planned use without a legal water source. So, you may have an absolutely perfect site with high traffic, visibility and accessibility but if you don’t have the water you can’t develop the property.

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Church to Retail Use Appraisals

by Administrator on Apr 4, 2018 Church / Religious 39 Views

Churches are special-purpose or special-use properties and generally not easily converted to alternate uses like retail. Usually you can’t modify a Sanctuary or most other religious buildings for another use, they are just not designed for that purpose. In Las Vegas there are church groups that have purchased what were originally office buildings or retail buildings and then they modified them for church use. Some of those buildings can be reclaimed and used for their original purpose, usually with significant renovation. These buildings are usually rectangular-shaped, one story buildings but they are relatively rare.

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