Appraisal Journal articles from January 1994

Appraisal Journal archives from January 1994

Using an engagement letter to minimize discrepancies between appraised value and transaction price. (includes sample engagement letter)
January 1, 1994... The economic conditions of the 1990s have created new complexities within the real estate environment. This both challenges and frustrates real estate professionals. In particular, real estate appraisers face an environment that rewards an...

Dealing with regulators.
January 1, 1994... There are many myths that surround a regulator's visit to a bank. An impending visit conjures the image of a group of men in black suits arriving at a bank unannounced; they look ominous, carrying calculators and wearing green eye shades....

Real estate appraisers: independent contractors or employees?
January 1, 1994... Do you believe that real estate appraisers are independent contractors? The Internal Revenue Service (IRS) thinks they are not, and even forced one real estate appraisal business to defend itself in U.S. District Court against claims that...

Evolution of appraisal reform and regulation in the United States.
January 1, 1994... the past 60 years. Ethics and education have become the most important aspects of the profession. Even though professional appraisal organizations surfaced in the United States in the 1930s, little appraisal reference material was available....

An overview of the senior housing market.
January 1, 1994... Between 1970 and 1990, the number of people in the United States older than the age of 65 increased by 55.7%. This age group grew from 20,065,502 in 1970 to 31,241,831 in 1990. In 1970, people older than 65 represented 9.9% of the total U.S....

Evaluating interim uses.
January 1, 1994... Accepted appraisal theory has long held that an improved parcel may have two separate highest and best uses--that of the site "as if vacant" and that of the site "as currently improved." The need for this differentiation stems from the principle...

Supply and demand considerations in residential subdivision analysis.
January 1, 1994... Residential subdivision projects are among the greatest single nonperforming property types held by institutional lenders and governmental asset managers as a result of substantial overbuilding during the late 1980s in many housing markets. One...

Property-to-property comparison.
January 1, 1994... Fundamentally, appraisal is a process of comparison. This assertion applies to the market overview and neighborhood sections of an appraisal as well as to each of the three traditional approaches to value. The process of comparison is most...

Appraising proposed recycling stations.
January 1, 1994... Although recycling is not a new concept, the dedicated recycling station is comparatively new as a real estate investment. What recycling there was in the 1960s and 1970s was handled through dedicated transfer stations or the few transfer...

The problem of appraising specialized assets.
January 1, 1994... Appraisal is the art of developing substitutes for actual market values. Appraised values, although called fair market values, are not market values. Market values are ex-post, or after-the-fact, values determined by actual market transactions....

Do we need a statewide appraisal peer review system?
January 1, 1994... The appraisal literature is replete with articles discussing appraiser certification, ethics, standards, review practices, legal liability, and client relationships. The professional life of an appraiser has never been more fraught with intense...

Limiting an appraisal firm's liability and exposure.
January 1, 1994... Regulatory forces are reshaping the appraisal industry. State licensing, legislation, the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), requirements from lending institutions, and other factors are forcing...

Appraisal assignments involving endangered species.
January 1, 1994... The 1990s have quickly become an age of environmental awareness. One of the most sensitive environmental issues involves the presence of endangered animals on public and private lands. Protection of such wildlife and their habitat has spurred...

Agency relationships in appraising for institutional asset managers.
January 1, 1994... Currently, pension funds invest tens of billions of dollars in the form of indirect equity real estate ownership in commingled real estate funds (CREFs) managed by institutions. Quarterly and annual valuations of the properties in these CREFs are...

1993 survey of appraisal clients.
January 1, 1994... The appraisal industry continues to evolve toward proposing and coordinating governmental regulations, addressing changing markets and client demands, and expanding the variety of reports and services. Throughout this evolution, one question must...

A new bridge across the Atlantic for the Appraisal Institute.
January 1, 1994... The Appraisal of Real Estate, ninth edition, begins chapter 1 as follows: Under all is the land. Land . . . is the foundation for the social and economic activities of people. Because land is essential to life and human society, it is the...

The Gordon Growth Model and the income approach to value.
January 1, 1994... The idea that property has a value directly proportional to its earning ability has been around since at least the sixteenth century.(1) At that time, though, a distinct and informed property market was not readily apparent, and the factors used...

Endangered species habitat and urban development.
January 1, 1994... The stated purpose of the Endangered Species Act of 1973 (ESA) is "to provide a means whereby the ecosystems upon which endangered species and threatened species depend may be conserved, to provide a program for the conservation of such .... ..

Trends in appraising conservation easements.
January 1, 1994... Conservation easements are increasingly being used to protect natural resources for the public's benefit. The ability to stretch acquisition dollars by acquiring a portion of the bundle of rights has encouraged preservation organizations and...