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 995 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 3890 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 878 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 1081 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 816 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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Buying a Tavern and Need an Appraisal?

by Administrator on Jul 6, 2018 Business Appraisal 7 Views

The initial reaction of most appraisers to that comment is to ask “are you buying the real property, the business entity or both?” It’s amazing when at times you discover that a buyer doesn’t even know what he or she is wanting or trying to buy. For appraisers the assignment is dramatically different if it’s just a real property appraisal versus a business appraisal that includes the real property. Most qualified real property appraisers wouldn’t have a problem completing an appraisal of the real property. If the party needs a business-only appraisal most real property appraisers would pass the client along to someone who appraises businesses. An assignment can however swerve quickly if it has to include both the real property and intangible assets like licenses and business income and it’s then described by the client as a “going-concern” appraisal including the real property. That usually means that it’s not just a real property appraisal that’s needed, it’s real property

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The Las Vegas Real Estate Market 2018

by Administrator on Jul 5, 2018 Market Conditions Articles 10 Views

The following graphic, based on Greater Las Vegas Association of Realtor data, says it all. The number of sales (in purple) are falling while the average price of a home (in green) is rising. As I discussed in a previous article this change in market conditions is playing havoc with the market and it has since 2015. For sellers, they want to increase the sales price of their homes in keeping with the trend. For buyers they are having to bid higher and higher to purchase the home that they want.

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Appraisals for Real Estate Agents

by Administrator on Jul 3, 2018 Market Conditions Articles 10 Views

Do some real estate agents / brokers have unreasonable appraisal expectations? If the agent / broker starts your conversation by saying “I already have an appraisal but it’s too high” or they say “it’s too low” you are headed for problems. My last assignment the agent had a high appraisal, he didn’t disclose the value to me and I didn’t ask, but he couldn’t put the deal together so called me and asked for another appraisal. My appraisal was “too low” for him so he asked his money back. I have refunded appraisal fees, not many over 40 years, but if there is a valid reason I will consider it. The value being “too low” is not a valid reason.

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Are Your Real Property Taxes too High or too Low?

by Administrator on Jun 20, 2018 Property Tax Dispute 9 Views

I have appraised properties and found on occasion that the assessments and taxes being paid by the owner are extremely high or extremely low. It’s one of those things that just jumps out at you, if you have completed reports on similar properties you get used to seeing assessments and the taxes paid fall into a typical or normal range. Owners get into a pattern of paying their taxes without question. Many run businesses and they just don’t think about property taxes. If the taxes are $ 6,000 per year or $ 16,000 per year, they just make the payment and think about the size of their tax deduction and they don’t consider that their property taxes may be $ 10,000 higher than they should be annually.

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Mortgage Interest Rates and Appraisals

by Administrator on Jun 18, 2018 Market Conditions Articles 25 Views

If you are lucky enough to find a home, especially in one of the high housing demand states, you should be happy that rates aren’t 8.0% or higher. I know that sounds painful, no one wants to hear that a situation that is becoming worse is not that bad, but I can honestly say that I would be happy with a 4.75% to 5.25% mortgage interest rate. If you have ever taken a 30-year home mortgage with an 8.0% to 10.0% interest rate, like I have, you can put recent increases in perspective. If you have only been around to see 3.31% to 5.0% mortgage interest rates I’m sorry to inform you that you are out of touch with reality. It doesn’t take much to get back to higher rates, probably not as high as the record 18.63%, but higher than the near 5.0% that we have today. Those who decided to wait for rates to fall may never get another chance to buy or cash out for years.

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