Appraisal Journal articles from July 1993

Appraisal Journal archives from July 1993

A perspective on future office building investment.
July 1, 1993... The twentieth century has produced significant improvements not only in construction techniques but also in communications and machine technology that enabled office buildings to be taller and larger and office space to be more efficient and...

The appraiser as an artist.
July 1, 1993... "Appraising is an art as well as a science," is a familiar phrase to both students and veterans of the appraisal industry, though nobody seems to know exactly when or where it originated. Within the business community appraising is considered...

Valuing sponsor shares in a cooperative apartment. (includes appendix)
July 1, 1993... Cooperative (co-op) ownership is defined in The Appraisal of Real Estate, tenth edition, as: A form of ownership in which each owner of stock in a cooperative apartment building or housing corporation receives a proprietary lease on a specific...

The valuation of income property in overbuilt markets.
July 1, 1993... Many commercial real estate markets have been distressed by the construction explosion that occurred during the last half of the 1980s.(1) Nationally, real office market rents have declined 45% since 1982 and office vacancy rates have stood at...

The determination of hotel value components for ad valorem tax assessment.
July 1, 1993... In many counties and other taxing districts, a trend has developed toward assessing real property using an income approach valuation instead of the more traditional cost approach. While an income analysis is generally considered the most accurate...

Considerations in the valuation of hotels.
July 1, 1993... The accurate valuation of a hotel can be a trying assignment for those who are not routinely exposed to this complex property type. The singular nature of many of the determinants that drive value requires in-depth analysis of factors often...

Ethics in hotel appraising.
July 1, 1993... The demise of the savings and loan industry presents an appropriate time to investigate ethics in hotel appraising. Many of the bank failures that plague the economy today can be traced to either inept or unethical real estate lending practices....

Factors to consider in purchasing or selling an appraisal business.
July 1, 1993... An appraiser may have spent a lifetime building a business and reputation to be proud of, and then decided it was time to sell. Another appraiser may have planned and saved to buy an appraisal practice after obtaining a designation. How is an...

Management by objective for appraisal firms.
July 1, 1993... Appraisal firms can be authoritarian, with hierarchies clearly defined. There is usually a clear distinction between management and field appraisers with the channel of communication flowing downward. Field appraisers usually have little if any...

The valuation of owner-financed residential mortgages.
July 1, 1993... In the fourth quarter of 1991, individuals owned $454 billion or 16% of the one- to four-family residential mortgages outstanding. A significant segment of these mortgages was generated through owner-financed transactions. For a variety of...

Direct capitalization or discounted cash flow analysis?
July 1, 1993... One issue that seems to attract increasing attention is whether the direct capitalization method (direct method) is too simplistic and subjective for valuing income properties in current markets. Many critics of the direct method advocate more...

Comments on discounted cash flow analysis.
July 1, 1993... Just last year, IBM celebrated the 10th anniversary of its introduction of personal computers into the market. For real estate appraisers, personal computers as well as Hewlett-Packard's introduction of the HP-12C have revolutionized the...

The six factors of one dollar are actually fourteen factors. (valuation)
July 1, 1993... Every income-property appraiser has received instruction on the six factors of one dollar.(1) The literature from both The Appraisal Foundation(2) and the Appraisal Institute(3) includes this material as required knowledge for all appraisers who...

Survey of the effects of state certification on appraisers.
July 1, 1993... On August 9, 1989, President Bush signed the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA). The stated purpose of this act was to resolve the savings and loan (S&L) crisis and to provide for the future health of the...

Improving the effectiveness and efficiency of appraisal reviews: an information systems approach.
July 1, 1993... Real estate investment decisions often involve millions of dollars. As the recent S&L debacle shows, these decisions are sometimes misguided. A real estate appraisal is an important decision-making tool. A good appraisal will identify the...

The theory, assumptions, and limitations of direct capitalization.
July 1, 1993... Historically, real estate investments have been motivated by a combination of three investment benefits: 1) cash flow, 2) appreciation, and 3) tax shelter. During the 1970s, most of the investment interest in real estate was caused by real...

Installment sales of mortgaged real estate and the wraparound mortgage: an update.
July 1, 1993... In 1980 my article, "Installment Sales of Mortgaged Real Estate and the Wraparound Mortgage," on the use of a wraparound mortgage in the sale of real estate on the installment basis, appeared in The Appraisal Journal.(1) The focus of the article...

The long and short of it. (writing valuation reports)
July 1, 1993... Structuring and writing reports are integral to the appraisal process. Unfortunately, practitioners often give their reports short shrift. As a result, clients and other readers will pay back in like coin by not reading them. In addition, the...