Appraisal Journal articles from April 1994

Appraisal Journal archives from April 1994

Bank branch valuation: an empirical approach.
April 1, 1994... The proliferation of bank mergers and acquisitions as well as the widely publicized bank failures that have occurred recently have dramatically increased the demand for bank branch appraisals. Industry experts expect that mergers and acquisitions...

Private-equity golf/country club communities: issues and answers.
April 1, 1994... The residential portion of a golf course property is similar to any other residential development in that the interest being valued (if fee simple) represents the value of the property in its present condition. This is normally based on...

Three treatments of debt financing for capital budgeting decisions.
April 1, 1994... Three business school disciplines--accounting, finance, and real estate--make use of the capital budgeting concept when teaching project decision making. Capital budgeting has been defined similarly in each discipline as, "The process of planning...

Let's communicate.
April 1, 1994... The third edition of The Dictionary of Real Estate Appraisal describes a review appraiser as "an appraiser who examines the reports of other appraisers to determine whether their conclusions are consistent with the data reported and with other...

The relevance and application of the gross income multiplier.
April 1, 1994... Just as a capitalization rate is used to express a relationship between net operating income (NOI) and value, a gross income multiplier (GIM) is used to express a relationship between gross income and value. Perhaps because of their simplicity,...

Analyzing the property tax expense.
April 1, 1994... Proper appraisal practice requires detailed analysis of operating expenses. Failure to correctly estimate operating expenses can significantly affect forecasted cash flows and thus the appraised value of commercial real estate.(1) The focus of...

Impact of state certification on the commercial appraisal market.
April 1, 1994... This article examines the effects of state certification on the market for commercial real estate appraisals. State certification grew out of the Real Estate Appraiser Reform Amendment to the Financial Institutions Reform, Recovery and...

Improve your appraisals by avoiding forecasting errors.
April 1, 1994... Inherent uncertainty has led some appraisers to question whether it is worthwhile to forecast the future. They argue that value estimates should not be based on forecasts because too many assumptions must be made. Critics of forecasting say that...

Developing an appraisal training system.
April 1, 1994... Few appraisal firms have formal training programs. The fledgling appraiser is usually given a copy of a previous appraisal to use as a skeleton and he or she is expected to learn from it and apply its verbiage and concepts toward current and...

Comprehending compounding.
April 1, 1994... In the world of finances, the single most important mathematical process, apart from adding and subtracting, is compounding. This is because compounding forms the basis of all mortgage factors, investment discounting, and sinking funds. It is...

Replacement reserves: a model approach.
April 1, 1994... During the 10-year span from the mid-1970s to the mid-1980s, more commercial office, residential, industrial and retail space was developed than in any other 10-year period. While the majority of property developed during this period will...

Estimation of a monthly adjustment for market conditions.
April 1, 1994... The calculation of a monthly adjustment for market conditions over time is a common problem for real estate appraisers, yet The Appraisal of Real Estate, tenth edition, suggests no procedure for its accomplishment.(1) Perhaps this silence springs...

Determining ground-lease rental rates.
April 1, 1994... In the course of a career, a commercial/industrial real estate appraiser may be confronted with the need to establish rates of return for ground-leased property (also referred to as land leases). Often the need to establish an appropriate...

The value of contributed property in utility valuation.
April 1, 1994... In the course of a recent water and sewer utility valuation assignment,(1) the author was confronted with a dilemma in the form of "contributions in aid of construction" (CIAC). While not much research has been done on this factor, if handled...

Accurate appraisals in a rural market: some problems and solutions.
April 1, 1994... The rural market is characterized by relatively few sales within large geographic areas, and complicated by the great diversity of properties within the same neighborhoods in terms of age, condition, quality, and size. Sales are often so scarce...

Fundamentals of production that influence industrial facility designs.
April 1, 1994... The appraisal of a production facility should encompass all characteristics of a facility, but in particular it should evaluate production capability. A fundamental knowledge of basic production approaches used in manufacturing facilities can...

Determinants of demand for industrial property.
April 1, 1994... A primary form of real estate crucial to business is industrial property. Although industrial property receives little attention in the real estate literature, such property represents tremendous economic resources. For example, according to the...

Subway tunnel easements in metropolitan areas.
April 1, 1994... Rights to use a subsurface held by someone other than the fee owner are common and vary widely. They range from utility line easements, including the right of surface entry (effectively precluding building construction), to the rights to remove...