Appraisal Journal articles from April 1995

Appraisal Journal archives from April 1995

The legal liability of real estate appraisers.
April 1, 1995... The real estate and financial boom of the 1980s caused serious problems for many people, including the financial and real estate professionals who operate in these fields. It has become apparent that some expectations were too optimistic for both...

Communicate: make your expertise known. (appraisers)
April 1, 1995... Appraisers can take an active role in shaping how clients, the public, and the real estate industry view appraisal services by projecting a positive image of the profession and increasing the awareness of appraisal services. Every appraiser knows...

Logic and rhetoric in appraisal reporting.
April 1, 1995... What constitutes a good appraisal report? One answer is: the logical and unbiased presentation of the problem, facts, arguments, and conclusions. It seems that the art of persuasion is necessary only when logical proof is missing. This is not...

Appraisal: science or art?
April 1, 1995... The universal goal of an appraisal is, or ought to be, to provide an accurate estimation of value. There are two broad ways in which appraisal accuracy can be achieved. One is to rely on the individual judgment and experience of an appraiser. A...

The factual basis of an appraiser's testimony.
April 1, 1995... Appraisers testify as valuation experts at trials and hearings subject to the rules of evidence. Part of the foundation for a market value opinion may rest on facts that have not been formally admitted into evidence. An opposing attorney...

Sales comparison approach: revisited.
April 1, 1995... A California MAI-designated appraiser recently explained that the reason he demands that all of his residential appraisers measure homes down to the specific inch in every dimension is: "There is so little of what we do today that is...

The cost approach in residential appraising: make it optional.
April 1, 1995... The purpose of this article is to propose that the cost approach no longer be viewed as mandatory for residential appraisals and that its use be made optional, at the discretion of the appraiser involved. Currently, when an appraiser decides that...

Medical office building appraisal.
April 1, 1995... Even when equipped with a complete understanding of how to appraise a standard office building, to appraise a medical office building an appraiser must thoroughly understand the many characteristics that make its appraisal unique. Not only do...

Deriving IRR sets from market transactions. (internal rate of return)
April 1, 1995... Most appraisers have no difficulty deriving overall capitalization rates from market transactions but many seem to have a mental block about extracting from market sales the data they need to develop a discounted cash flow (DCF) analysis. While...

What's the IRR for an REO? (internal rate of return; real estate owned property)
April 1, 1995... The assignment is simple: Conduct a discounted cash flow (DCF) analysis in an appraisal of a real estate owned (REO) property that is 40% vacant and is located in an overbuilt market, justifying the discount rate. DCF programs can account for...

The corner adjustment.
April 1, 1995... When writing appraisals, I sometimes find myself thinking that the comer adjustment is always the same. In other words, a corner adjustment of 15%, for example, will always do the job. In my more sophisticated moments, I think that the corner...

Ensuring consistency in the estimation of vacancy rates.
April 1, 1995... Discounted cash flow (DCF) analysis is becoming commonplace in the evaluation of income-producing properties. DCF analysis provides a more accurate measure of worth than direct capitalization, because it takes into account changes in the value of...

1994 survey of appraisal clients.
April 1, 1995... For the third year, appraisal clients from across the nation have been surveyed regarding several current issues. The survey form is shown in Table 1, and the responses are summarized here. With access to the results of appraisal client surveys...

FIRREA, appraisal reports, and bank compliance. (Financial Institutions Reform, Recovery and Enforcement Act of 1989)
April 1, 1995... The savings and loan (S&L) crisis and the consequent draft of public funds to bail out the failed thrift institutions heightened the need to monitor lending policies and practices of private financial institutions. The Financial Institutions...