My New Blog

April 7th, 2019 5:16 PM
As appraisers we assume too often the problem and scope of work.   For starters it is critical to define the problem for valuation and scope of the assignment.  The most common is residential value for estates, divorces, buyouts ect.   The purpose of the appraisal should  be the first question to determine if its retrospective or current value.  Of course, in a purchase its todays estimate of fair market value with current sales listings and pending sales.  Hopefully, the appraiser will select comparables that will not be challenged by  a reviewer attorney or a fellow appraiser.  Yes, more than three sales shows someone is digging deeper if the market is active. Even if it means going back in time vs. another location.  This is where doing the proper research along with an analysis is critical in selecting the comparables,  but also knowing the current economics of an area. The markets in New Jersey are so specific to a local area comparable selection is critical. My rule of thumb if I feel I am spending too much time in the car driving from subject to comparables I need to make sure I am not missing the market.

Posted in:General and tagged: real estate appraiser
Posted by Ray Underhill on April 7th, 2019 5:16 PMLeave a Comment

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