Thinking Outside the Box

Market Participant Who are the market participants and what motivates them? Owner/Seller Investor Buyer/Tenant First time Upgrading Downgrading Remember: The role of the appraiser is to provide objective, impartial and unbiased opinions about the value of real property — providing assistance to those who own, manage, sell, invest in and/or lend money on the security of real estate.

Neighborhood boundaries What are the subject market boundaries? Are there small pocket segments? Driving forces of the area? Positive / Negative Amenities

What are the physical characteristics of the subject? Highest and best use Do not assume the obvious is the most accurate. Zoning does not always dictate Highest and Best Use Ask yourself the following ….. Do the improvements have an interim use or dual use? Are there any segmented areas within the market? Is the subject a single family with an ADU or a 2-4 Unit? What are the physical characteristics of the subject?

When is a property no longer conforming? Over built or under built for the area? Inadequate floor plan/ functional utility issue? Lot size larger/smaller then predominate market? Are the accessory features common in the market? Is it time to expand your analysis?

Stay Open Minded!! Embrace technology that actually saves time… Regression software Automated data input tools Online maps - satellite views Laser measuring tools Are you using an adequate tool for photos? Remember, a clear photo is worth a thousand words…

Always Expand Commentary/Data Tell the full story, the typical reader is likely not an appraiser… Is it typical for the market, is it permitted, does zoning allow for it’s use, is there another comp with similar issues? Are adjustments truly obvious and to whom? Reconciliation commentary should be detailed and specific to the comps used and the adjusted values. How did you arrive at your value conclusion? Which sales were given most weight and why? Explain your analysis.

Time adjustments What are the subject’s neighborhood Market Trends indicating? Is there really insufficient data to quantify a trend? If not, is it explained? Consider all reliable sources, not just the limited data supplied within the report. Does the data on the MC form match the reported Market Trends on page one?

Be proactive…. Did you ask for relevant documents you need from the client….? Sales contract, with all addendums? Survey? Condo questionnaires? Lease agreement? Renovation bids? Did you research….? Zoning? Permits? Assessment records, subject and comparables? Market trends?

If you have any questions or concerns, please contact us at (866) 333-8311