My New Blog

April 7th, 2019 5:16 PM
As appraisers we assume too often the problem and scope of work.   For starters it is critical to define the problem for valuation and scope of the assignment.  The most common is residential value for estates, divorces, buyouts ect.   The purpose of the appraisal should  be the first question to determine if its retrospective or current value.  Of course, in a purchase its todays estimate of fair market value with current sales listings and pending sales.  Hopefully, the appraiser will select comparables that will not be challenged by  a reviewer attorney or a fellow appraiser.  Yes, more than three sales shows someone is digging deeper if the market is active. Even if it means going back in time vs. another location.  This is where doing the proper research along with an analysis is critical in selecting the comparables,  but also knowing the current economics of an area. The markets in New Jersey are so specific to a local area comparable selection is critical. My rule of thumb if I feel I am spending too much time in the car driving from subject to comparables I need to make sure I am not missing the market.

Posted in:General and tagged: real estate appraiser
Posted by Ray Underhill on April 7th, 2019 5:16 PMLeave a Comment

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July 6th, 2018 6:11 PM

Like most of the buying public we are always looking for the cheapest deal. I couldn't agree more. I want to pay a reasonable cost for a service.  I have gotten calls over the past years  from people who are just looking at cost and not really looking into who they are hiring to do an appraisal.   I have done reviews.  I have looked an numerous reports over my career.   Not everyone does a good analysis in their report and what does it reflect ?   A poor analysis. This leads to an inaccurate value.
  I don't know about you but if this is one of the largest assets you own. Wouldn't you want the most accurate analysis completed.  Time is where sometime who charges not properly for his or her time cheats themselves ,but more importantly the client.   I recently saw a report done by a broker-appraiser. It was done for a hearing and done poorly.  Instead of getting someone who might have charged more  and had  done a complete analysis. The property owner hired a broker-appraiser who after seeing this report doubt he knew how to analyze or understood selecting the best comparables.   I saw the fee and he cheated out both himself and the client of a good analysis.  Just beware in the real estate business the cheapest may not be always the best way to go..

Posted in:General and tagged: real estate appraiser-cost
Posted by Ray Underhill on July 6th, 2018 6:11 PMLeave a Comment

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