We've all been there. We do an appraisal inspection and find health and safety issues that must be mentioned in the appraisal. A few weeks later, we receive an engagement letter requesting a re-inspection. The appointment is set and the borrowers confirm that all repairs have been made to a satisfactory level. The appointed time arrives and you drive to the property in question. Before you even get out of your vehicle, you can tell that the health and safety issues have been minimally addressed but certainly not to the level that would allow for passage.
October 7, 2013 - Post No. 30 - This week I am revisiting a subject I discussed about 6 months ago - companies purchasing huge numbers of houses to rent as a new investment vehicle.
In parts of Europe, especially Germany, there are companies that own literally tens of thousands of rental homes. This has been a successful investment for many decades. Will it be here in the USA? My opinion is a resounding No.
I recently had the opportunity to attend 'The Five-Star Conference & Expo.' It was my first time attending this conference, and I found it to be very different from others conferences I have attended in the past. Though this conference concentrated on realtors, asset management, and preservation companies, there were several sessions regarding valuations. One topic to note was in regard to the declining number of appraisers and the increasing number of realtors.
Both of my children play soccer, just as my father and I did. And as with any game, you have good games and bad games. But what is a “good game” really? What does it mean to “play well”, and do we mean as a team or as an individual player? If I say I “had a good season”, some folks might assume my team won most of its games, others might think we at least finished off the season strong, and others may even believe that I mean I improved my performance compared to the previous season.
I do a lot of traveling. Too much if you ask my wife. I enjoy traveling and seeing new cities, but dealing with airports, rental cars, hotels and the like gets old. Sometimes I travel a long distance, but much of the time my travels are somewhat regional. I am not a huge fan of Vegas, but it seems that I have business there at least 3-4 times per year. Now, the City of Sin is only about 9 driving hours from my home, but I usually fly. Every time I go through the process of getting from here to there on an airplane, I ask myself why I don’t just drive.
Have you ever gotten into a disagreement over whether including listings in the sales comparison approach is inappropriate – or even misleading? I'd like to say I’m torn over the issue and just present my opinion as some middle-of-the-road approach; however, I really do see the benefits of including listings as part of summarizing my appraisal process in my written report.
September 23, 2013 - Post No. 29 - For those who started with me over at the CES website, thanks for following me to AppraisalBuzz.
The Appraisal Institute just released the 14th edition of the primary text for the real estate appraisal industry. In keeping with the times, the book is now available as a searchable PDF file.
The book has expanded discussion on the topics of:
Market Analysis and Highest & Best Use
Capital and Real Estate Market Trends
September 9, 2013 – This week’s topic is about Gross Income Multipliers (GIMs) and Operating Expense Ratios (OERs).
Last week, I discussed fee and turn-time management in running an appraisal business (“Business Management: Part 1 Fee and Turn-Time Management”). Today, I wanted to further explore how to actively manage our businesses: through managing our clients.
The $5.25 Billion widening of the Panama Canal is scheduled to be completed in the Summer of 2015. This event is already affecting global trade routes. More importantly, it is affecting various cities in the USA in positive and negative ways.
In our day-to-day appraising it is difficult to see how an event in Panama can affect the value of the property we are appraising today. Hopefully, we have learned that national and international events routinely alter our local market conditions – e.g. The 2008 Credit Crisis, The Euro Debt Crisis, etc.