Month: May 2018

Few Considerations For Private Lenders For Real Estate

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At the time you are considering to buy a new house or second house then searching for private lenders for real estate can be a good idea.

In case you start searching for private lenders for real estate there are lot of them you will come across. However it is essential for you to understand the fact that you can get the best one when you have ensured that the provider is reliable. Your money will be at stake so it is crucial that you search for private money lenders for real estate that is well known and good enough.

There are lots of factors that you have to consider so that you can select the best one. Here are some of the aspects which you need to keep in mind at the time you are searching for private lenders for real estate:

At the time you search for these money lenders you will come across lot of them however you need to search for the one that is good enough. However one thing that you need to know is that the best one is the one that is reliable. There are some of the factors which will help you to know the best regarding this. Lot of things will have to be kept in mind at the time you are searching the private lenders.

The foremost thing that they need to have is the license for the same. There are lots of lenders that will claim that they are professionals however there are chances that you will not always get the best type of loan that you want. License plays a very significant role. With this you will be sure that you will be assured of dealing through the professionals that are good enough. You need to initially tell to the lenders about all that you want. So that you can accordingly get what you want.

Another thing you need to keep in mind is that to get along with the private money lenders for real estate that has lot of alternatives for you. They are the ones that will be able to offer you what you are looking for. They are the ones that will give you options so that you can select to get along with the loan that will be suitable to your needs. You can ask them to explain you well and also prepare a chart that will simplify everything including interest rates. With this you will be able to make a final choice as to what is good and best.

These are some of the things that you need to consider at the time of searching for private money lenders.

Is It Better To Buy Or Lease Commercial Space For My Business

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Your business location should be tailor-made to fit with your company budget, spacing requirements and ease of operation. For some business owners, leasing affords a sense of freedom and relieves the financial burden of a down payment, yet may be too restrictive for some kinds of operations. The decision to buy a piece of commercial property offers its own set of risks and rewards, and should be considered carefully before entering into a mortgage contract.

Leasing Commercial Space

1. Cost Effective

Leasing a commercial space will usually require a one to two month move-in deposit, making the rental space a cost efficient way to do business. New business owners may be strapped for cash, and by leasing, rather than purchasing, your storefront or office is cost effective to set up shop with minimal funding.

2. Flexibility

Leasing a commercial space gives the entrepreneur plenty of room to grow, downsize or change locations. Although once you sign a lease, you are locked into a fixed amount of time to make the lease payments, the terms may be only a matter of months to be released and start over in another location.

3. Freedom

Setting up shop without the burden of a mortgage to pay allows a sense of financial freedom. Albeit, a purchased piece of commercial property could be leased or sold to another, there could be months before the owner receives any income from the property. A hefty mortgage may also interfere with business profits and may demand downsizing of personnel.

4. Maintenance

A leased office or shop has a landlord to lean on, taking away tedious responsibilities with the plumbing, electricity and security. In a leasing situation, any repairs or legal liabilities are left in the hands of the building management team.

5. Subletting

In some situations, you may sublet your leased office space to another. However, this must be cleared in writing from the management office, and careful attention given to their rules and regulations for renting out the space.

Buying Commercial Space

1. Secured Location

Buying a piece of commercial property adds assurance that the space is secured and cannot be given to someone else. In a leasing situation, when the lease expires, the renewal process may not have the same initial terms, thus proving unfavorable to renew. However, when you purchase, your prime location is secured.

2. Equity

As with a residential piece of property, a commercial owner may take out cash against the mortgage. In an emergency financial crisis, having a mortgage to borrow from lends a sense of security and provision of funds. Most commercial purchases will require 20 to 25 percent down on the purchase price, giving instant equity to the business owner.

3. Remodeling

When you have bought a property, it is your to do with as you wish. Remolding, expansion and reconfiguration are yours for the taking. The ownership allows the business structure to be molded around the enterprise for a perfect fit and usage of space.

4. Tax Deductions

The interest on a commercial loan is tax deductible, with allowances for deducting any depreciation.

5. Lease Your Excess Space

If you own the property, you may lease your excess space without any restrictions from a third party over your head.

The Natural Scene Of Goa Increases The Value Of Its Real Estate

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The Goa real estate exist their importance in itself. Who is unknown about the beauty of Goa, Goa is well known for their natural scene, which is God gifted. Its natural scene is the symbol of greenness and shows its prosperity. In the same way its natural scene is the key point for Goa real estate, which plays an important role in booming economy of India.
If we see its property segmentation, we find it in two parts, one is commercial and another is Residential property. Commercial property is covered by many types of shop, hotel, resorts, showrooms, offices and malls but residential property is covered by many housing board projects, apartments and modern type of industrial constructions etc.
If we see its real estate by state segmentation, we find its property in four parts such asEast, West, North and South Goa.
According to Real Estate Company Pearls group There is a plane to redesigned Goas old property in to the new by their restructuring and reconstructing plane.
There is a statements said by expert about Goa properties Goa property is as flexible for man as there atmosphere.
Jyoti Narayan who is the executive director gives own view about Goa and their property The group who had already property in Goa find more profit and make great existence to increase the value of real estate and make conditions boom able.
There are many ornament of Goa real estate like as Hospitals, Theater Community activities, Metro projects, Road projects and airways projects. After it Goa property is already decorated with many featured projects also.
To sum up, we can say that the person who want to invest in Goa property never will be hesitated because the profit by Goa property is not only financial but also mentally for rejoicing your spirits.

Florida Commercial Real Estate – Having the Best Commercial Property

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You can always take advantage of the recession and make some good profit in times of need. Are you wondering how this can happen? By simply investing your money in Florida commercial real estate, you will surely achieve your goal.

Florida is a well-known thriving part of the America. Money may be a little bit tight during recession but there is always a good business in Florida wherein tourists from all over the globe are flocking together. With this it is time for you to take advantage of buying a commercial property in Florida commercial real estate market. t.

These commercial properties are can be rented by prospective business owners or you can set your own business here since you have the advantage of having a good location. And after some few years when you are tired of the routine, you can even sell the place and earn a good profit from it. Normally these properties in Florida commercial real estate can double or even triple the price. With this, there will be a lot of prospective investors who will get interested of it.

Having your own Florida commercial real estate property can offer you a lot of things. As mentioned earlier, you can have it rented or open your own business using the property. You do not have anything to worry about since these properties are usually situated with those populated areas of Florida.

Opening your down business in Florida is a good idea since the money that you will use as your capital will never decrease. As we all know tourist is willing to spend for their vacation and that is good for the Florida economy not to mention their entrepreneurs. You might want to consider venturing into a hotel, spas, restaurants, bars and night clubs, shops and equipment rental for water sports and other activities. Even paid parking space is a good business idea in Florida.

When it comes to Florida commercial real estate, the location is always good. You dos not have to worry about wasting your money on a worthless piece of land even if you buy one in a small city because you can always expect to earn and appreciate after few years. Knowing all the advantages that you can get out of Florida commercial real estate, you can go ahead and start your investment. There are plenty of commercial properties that are available and for sure you will find the right one for your business ideas. You have to take time in searching and collecting selections. Once done checking the commercial real estate market, then it is time for you to make some comparisons among the selections that you have. This will help you end up with the right commercial property to invest.

Ella Ayson
Florida Commercial Real Estate

Living The Condo Lifestyle In Collingwood Blue Mountain Ontario

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For those who are unfamiliar to what living in a condo is all about, a condominium can be an apartment or townhouse located in defined space called a condominium corporation, where each owner of a condominium shares communal recreational facilities such as a gym, swimming pool, tennis court, clubhouse etc.

If you are in the mood to live a carefree life style, then Collingwood or Blue Mountain is the place to live, work and play.

Ownership of a Collingwood / Blue Mountain condo owners will be required to pay a monthly condominium fee. The purpose of this fee is to offset the costs of items like common element insurance, reserve fund allocations, kitchen refuse pick up, snow removal, lawn and garden maintenance and repairs for the various facilities you enjoy as a resident of the condominium complex. Any interior maintenance and repair work will be required within the space of your four walls, is your responsibility and not that of the general association of people who live the in condominium building.

Purchasing Collingwood / Blue Mountain condominium real estate is an advantage for a variety of reasons. If you live in a condo, you’ll only be responsible for a few exterior maintenance duties or repairs. You also have the chance to enjoy a lot of facilities that the Collingwood / Blue Mountain condominium development may offer such as a pool, tennis court or any other such facilities that you can use as the owner of a Collingwood / Blue Mountain condo. Other forms of housing which may provide these sorts of amenities may prove more expensive than affordable well-priced Collingwood / Blue Mountain condominium housing.

Those who wish to enjoy living in the Collingwood / Blue Mountain areas, then Collingwood / Blue Mountain condos can provide you with housing that meets your needs and financial requirements. For those who may not want the Collingwood / Blue Mountain condominium lifestyle, we also have chalets for sale or rent in the Collingwood / Blue Mountain areas.

www.CollingwoodCondos.com Search It – Find It – Live It

Buy, sell, rent Collingwood / Blue Mountain condos with a real estate broker who has been buying, selling and renting Collingwood / Blue Mountain real estate since 1995. My experience your win.

Real Estate Photography- Ultimate Exposure To Earn Profits From Your Property Firm

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Real estate photography is a new, exclusive initiative to promote international property business to inspire by the theme Development, Nature and Architecture. Real estate photography leads to increased competition in the photographic market. Most of time people would likely visit their property for sale because of the attractive images.

Tips of good real estate photography
– A good source of light.
– Wide angle lenses make real estate photos appear spacious, inspirational and motivational
– Digital formats cut down on printing and developing expenditures and makes photos available immediately.
– Same images should be available in different sizes so that according to the specifications you can provide it.
– take a shot of every part of house for sale including living room, kitchen, dining room, and other parts of the house.
– highlight the best features of your house.
– clean the entire house before taking its photos.
– hire a professional real estate photographer.

Real estate photography is of following kinds:
– Standard real estate photography,
– Elevated pole real estate photography,
– Exterior twilight real estate photography,
– Interior real estate photography services,
– Real estate photography for builders and architects.

Real estate firms have totally booming nowadays. If you are a property agent, you have probably faced a lot of competitions. Over few older years, when all you require is a well written advertisement to sell a real estate. Currently in order to fully publish your listings, you need to attach a good real estate photographs. With the emergence of digital cameras, the realestate that you are selling can be photographed and placed online. Potential purchasers from different parts of the world can actually see your listings with the images in it. Dont underestimate the value of these photographs because a purchaser can definitely decide to check out the real estate based on the pictures that you have.

Real estate photography makes the property images impressive. If you have a house which looks unattractive and you want to sell that but because of appearance no good investor wants to buy it. Through the technique of real estate photography you can make your house to appear better and most of the investors search online for real estate images to buy it. Based on recent estimations, the number of individual searching home for sale online has increased. Almost half of these property seekers found their dream property instantly online through the help of real estate photography. An image is worth a thousand words. Especially when your words may be limited by the Multiple Listing Service use real estate photography techniques to express your quality difference in properties.

How To Make Real Estate Decisions That Work

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You can make a lot of money through commercial real estate investments. However, you have to be patient. Take the time to research each property you’re considering as well as studying general commercial real estate principles. A lot of people just like yourself become successful at real estate investing by keeping informed and applying the tips in the following article. Stick to the advice presented below to help you succeed in the world of commercial real estate.

Make sure you have enough cash flow available for you from family, friends and any professional lenders accessible to you. Contracts should be devised that either provide you with a fixed rate of interest on the loan repayment, or provide them with a percentage of what you make from the property.ty.

Once you have signed a new lease for a property, your next priority should be your rent strategy. The effectiveness of your strategy will have a significant impact on the success of your new investment. Know how to plan for the rent you wish to charge before talking to a prospective tenant. This can help you keep targets and set a benchmark for your investment.

You need to do this so that all terms match the pro forma, and also the rent roll. If you do not look over these key terms, you could find a term that was not considered in the rent roll, which could cause a change in the pro forma.

Keep your commercial property occupied to pay the bills between tenants. Remember that if you have empty units, you have to take care of them. Maintenance costs on empty units can add up. If you have several properties open, you should ask yourself why, and attempt to correct the issues that may be driving out your tenants.

In order to learn more about the commercial real estate market, find a website that caters to investors of different skill levels. Having a great base of knowledge will give you the tools to complete every part of the buying process with confidence, leading to solid decision making.

It is critical when you are in the market for real estate that you know how to discern between a good deal and a not-so-good deal. People who deal in real estate on a professional level can spot a great deal immediately. They have their exit strategy already planned out, and therefore, they know when to quit a deal and when to stick it out. They have the experience to show them when repairs are necessary, how to correctly calculate their risk and which types of properties will help them to meet their financial goals.

When you are buying or selling commercial real estate, always negotiate. Let people know what you want and make sure you are asking for a realistic price.

Manesar Real Estate Market

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Manesar is one of the fastest growing townships in India and is a part of Delhi NCR. After Gurgaon, Manesar has caught the eye of Haryana Government and has become the new centre of developments.

Many eminent real estate developers are planning to invest in Gurgaon-Manesar Expressway. Builders like Unitech, Raheja, Vatika, DLF and various others have bought land in Manesar to create townships.

The upcoming projects like Expressway to Jaipur and SEZs are bolstering up the value of property in Manesar. These projects are undertaken by Reliance, DLF, Unitech and Raheja and are helping in boosting the property prices in Manesar already. In fact, according to survey held recently, Manesar ranked among top 3 choices of investors for property investment.

Manesar, from a small village is soon scoring its place among major outsourcing hubs in India. This transformation could happen due to the rising needs of industrial and commercial sectors. IMT (Industrial Model Township) is the main attraction of Manesar for industrial buyers as it now houses more than 500 industrial units.

Upcoming investment plans in Manesar:

Large numbers of corporate leaders like Nippon, Baxter, Stanley, Toyota, Mitsubishi, etc have setup their business units in Manesar.

With already being a home to largest car and motorcycle manufacturers namely Maruti Udyog and Hero Honda, another corporate honcho, Suzuki is also coming up with plans to invest Rs. 2500 crores in Manesar.

Also, Japanese majors and other multinational companies like Samsung Telecommunications will soon establish a unit worth Rs. 850 crores in Manesar to commence the commercial production of their products.

Next in the pipeline are Honda Motorcycles and Scooters India with a plan of pumping in Rs. 300 crores in its plant in Manesar to improve its capacity.

As happens with every developing city that the demand for residential property is upped due to commercialization, the trend is well followed by Manesar too. The professionals employed by the multinationals generated the need for housing and apartment accommodation. The rapid development of both commercial and residential sectors in Manesar has made it extremely popular among property developers as well as property buyers. The boom in real estate market is at its peak and this is what makes of property in Manesar sell like hotcakes.

An industrial and commercial hub:

Manesar is now known as an industrial and commercial hub of the city and has long ago shredded its image of a village. Earlier, no one had ever thought that a small city like Manesar could hold such potential for real estate market. There could be many reasons for this metamorphosis:
When Delhi became congested, leading companies moved to nearby areas around the national capital. It went on to develop Gurgaon property market by carrying their operations there and when again it was exploited enough, they moved further to Manesar. Therefore, hefty investments from various MNCs and setting up of major establishments in the city led to its conversion into New Gurgaon as called by many over the past few years.

Hike in property prices:

The property rates have doubled and even trebled in some areas in Manesar and have jumped from Rs. 20-25 lakhs per acre to Rs. 1.10-1.40 crores per acre. In just few months, commercial property prices have hiked by whole 35-60% and residential property by over 35%.

Infrastructural Developments:

The construction of 135 km long Kundli-Manesar-Palwal (KMP) Expressway has further augmented the property prices in Manesar Property. This would be the longest expressway of India and the most expensive too.

Real Estate projects:

Corporate Tower
It is expected to fulfill business requirements of shops, offices, etc.

Commercial Towns
HSIIDC would develop 12 commercial towns.

Townships
DLF City is planning to develop a huge township while Vatika would undertake construction of plots and villas.

Karma Lakelands
Unitech would bring in Ultra Luxury villas with an 18 Hole Golf course.

Manesar is seen as the next generation IT-ITes destination and is conveniently located. It has become one of the most preferred places to invest money in for both buyers and investors.

Commercial Property Appraisals And Property Valuation In Atlanta GA And The Southeast US – How Much

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There exist many reasons for seeking professional valuation of your commercial property, from preparing to sell to seeking funds or investment to upgrade. Commercial property appraisals should be approached with the expert assistance of a licensed appraisal professional – who can most effectively and properly execute a property valuation in the Atlanta GA or surrounding area.

Following are some important considerations to note, and answers to frequently asked questions, provided by Fletcher and Company. Fletcher & Company is a full service land, residential, industrial and commercial Georgia Real Estate Appraisal Firm providing property appraisal reviews, appraisal reports and industrial property valuation throughout the southeast U.S. appraisal coverage area, including Tennessee, North Carolina, South Carolina, Alabama, Florida and Georgia, and metropolitan areas in and around Atlanta including Roswell, Macon, Columbus, Griffin, Lawrenceville, Douglasville, and Fort Valley. .

1.? What is the range of services a commercial appraiser should provide?

A truly comprehensive professional appraisal services firm should provide the following services:
Appraisals for federal and non-federal related transaction lending situations
Tax assessment review, advice and appraisals
Advice in eminent domain and condemnation property transactions
Dispute resolution – divorce, estate settlements, property partition suits, foreclosures and zoning issues
Feasibility studies Capitalization rate studies
Market rent and trend studies
Expert witness testimony
Land utilization studies 2.? What property types are typically covered by a commercial property valuation agency?

Commercial appraisal service providers in the Atlanta, GA area typically provide coverage for:
Apartment Buildings & Complexes
Office & Retail Condominiums
Industrial Condominiums
Hotels and Motels
Industrial Buildings
Mixed-Use
Self-Storage Facilities
Shopping Centers
Office Buildings
Retail Buildings
Subdivisions (Commercial, Residential, Industrial)
Mobile Home Parks
Vacant Land
Farms
Restaurants
Nursing Homes
Gasoline/Convenience Stores
Resort Property
Religious Facilities
School Facilities
Single-Family Residential
2-4 Unit Multi-Family Residential
Rock Quarries
Golf Courses
Hangars
Marinas
Car Washes 3.? When hiring an appraiser, what questions should I ask?

To be confident and sure that the commercial appraisal firm you’re considering is qualified and experienced in their work, the following questions are appropriate:
What type of professional designations do you have and from whom?
Are you licensed or certified in the states you practice? Like any job you are contracting out, it pays to compare the resumes of appraisers whom you are interested in having prepare a bid. This is the first place to start.

4.? What appraisal approaches will be used in appraising my property?

The three most commonly accepted valuation approaches to value are the “cost approach”, the “sales comparison approach” and the “income approach”.

The cost approach combines the value of the land and depreciated site improvements with the depreciated value of the building. The sales comparison approach compares the property to others and adjusts for differences. The income approach takes market rents, subtracts a vacancy allowance and expenses, and takes the resulting net income and turns that into value using a capitalization rate.

It is rare that all three commercial property valuation approaches are done, and isn’t typically required. Appraisal theory has largely discredited the cost approach as reflective of market value and commercial appraisers seldom provide it except in newer construction and special purpose properties.

The sales comparison and income approaches are the primary valuation methods used for commercial properties. Even then, there are times when one of these approaches does not reflect the market and although it might be performed, it is given little or no weight in deciding on the final value conclusion.

5.? How are approaches to value selected for use in preparing a bid?

Fees for professional commercial appraisers will typically reflect the cost to perform two approaches to value, usually the sales comparison and income approaches. Even if a particular approach is not performed, time is still invested in searching and analyzing data. This occurs most frequently in areas where too few comparable sales occur. There are times when a third party, such as a lender, will require the cost approach to be performed. Let your appraiser know beforehand if this is the case.

6.? If I don’t like the appraised value, what can I do about it?

That depends upon many things. The best place to start is to speak with the appraiser(s) who signed the report. It’s possible that he/she may have overlooked one or more important factors which affect the value of your property; if you mention it in your conversation, you may find the appraiser willing to reconsider the value conclusion. Of course, if you are not their client (such as when your bank orders the appraisal), they are not required to speak about the appraisal and may be in violation of the licensing law or professional standards if they do so.

It’s important to remember that the appraiser is an unbiased third party. Their job is to find out the good and the bad about a property and report it, not to favor a direction. The better appraisals are round-tabled by professional review staff and carefully scrutinized before they are released, so you get the benefit and knowledge of more people than just those involved with the report.

If you are still dissatisfied, you can get a second opinion by hiring another appraiser or insist that a review appraisal be performed on the original report. If there is a large discrepancy in value, you or a third party may be able to negotiate an intermediate position.

7.? How much do commercial property appraisals cost?

Every appraisal is different, so fees are quoted individually on a per job basis. Generally, prices depend on the number of properties and the complexity of the assignment, though appraisals used as evidence in court cases command a higher price. Fees are normally calculated based on the number of hours it takes to do a report and the fee structure of the personnel involved, with modification for overtime if a rush assignment is required.

8.? Why do special purpose properties cost more?

Special purpose properties require research of a wider trade radius, sometimes the entire United States! Fees are based on time estimates, so the more time that is invested in finding comparable properties, the higher the fee. Also, the market analysis section of the report many times requires a greater amount of research time and it is not uncommon to have to purchase studies performed by industry experts to properly show the dynamics affecting the property type.

9.? What is a typical turnaround time?

Commercial appraisal delivery times typically range from two to four weeks, depending upon the complexity of the property and your needs. It requires one to two weeks to do the research, verify the factual nature of the information, perform a market study of the area and write the report. Typically, delivery times less than two weeks are rush orders and they command a price premium.

10.? How can I help shorten the turnaround time?

The number one way to help shorten the turnaround time is to provide your commercial or residential property appraiser with the written information they need as soon as possible. Copies of leases, deeds, rent rolls, income and expense statements and other items listed on our engagement letter are the needed as soon as possible. Delay in providing one or more of the necessary items will almost always result in a delay in the appraisal process.

11.? If you don’t come up with the value I want, do I have to pay for the appraisal?

Appraisers must maintain a third party position to your transaction. No appraiser can accept an assignment where bias could be interpreted. USPAP has a phrase used verbatim by many appraisal firms on their letters of transmittals:

“Our assignment was not based on the reporting of a predetermined value, a direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result or the occurrence of a subsequent event directly related to the value opinion.”

USPAP is very clear on this issue. Appraisers cannot be advocates for any client. Although it may seem unusual to some users to have to pay for a report that did not provide them a favorable outcome, appraisers governed by appraisal licensing laws must remain objective.

If there is any uncertainty in the value, clients should have the appraiser perform a restricted appraisal first and then upgrade the report to a summary or self-contained if the value is satisfactory. This is acceptable appraisal practice and one not often suggested by an appraiser.

12.? Why are the fees for commercial appraisals so much higher than residential appraisals?

There are many reasons why there is such a great discrepancy. The most important difference is the amount of time it takes to prepare each type of report. Most skilled residential appraisers can do a residential report in a half-day whereas a skilled commercial appraiser needs at least a week.

Residential reports are on a common form with a standardized property type whereas commercial appraisals are mainly free-form documents with information that varies with the property type, market and client needs. Special use commercial properties take longer and can have a multi-state data search radius, thus making it more time intensive and costly to perform than more common property types such as office and apartments.

13.? I paid my lender for the appraisal, therefore I should own it.

The appraisal is legally owned by the client, unless the lender “releases its interest” in the document, typically in writing to us. If the lender ordered it, they own it. If you just want a copy of the appraisal, under the Equal Credit Opportunity Act you can be given a copy of it upon written request of the lender.

14.? If I didn’t order the appraisal, can I find out the appraised value?

Only if you ask the person who originated the order and they provide permission in writing. However, most appraisal companies cannot give you this information because it would violate the ethical standards governing their appraisal practice.

It doesn’t make sense to me to hire you (the appraiser) if I don’t know you’ll come up with the value I need. Can you give me a guarantee?

It is a violation of state laws and the appraisal licensing laws to provide a value opinion without doing an appraisal. Although a guarantee can’t typically be given, in some cases a restricted appraisal can be performed that will tell you what the property is worth. If the value opinion is acceptable, the report can be upgraded to a summary or self-contained format for a higher fee.

15.? I paid for the appraisal. Why am I not entitled to get a copy?

The client is the person who engages the services of the appraiser, usually in the form of an engagement letter. Many times the lender is the one who issues and/or signs an engagement letter, making them the client. It does not matter who pays the bill. Only the client and those whom he has specifically authorized are allowed to receive a copy of the report from the appraiser. If the person who pays the bill is not the client, verbal or written permission is required for the appraiser to release the appraisal to anyone else.

16.? My lender said I need to get an “MAI appraisal”. What is it?

The term MAI, which stands for “Member Appraisal Institute”, is a registered trademark of the Appraisal Institute. The Appraisal Institute is a trade organization. There is no such thing as an “MAI appraisal.” Persons requesting an “MAI appraisal” mean that the report should be prepared by an MAI designated member of the Appraisal Institute. Each appraiser needs to be judged by his/her merits rather than the association to which they belong. *Note – it is considered discriminatory by FIRREA to consider or not consider an appraiser for an assignment based on a trade designation. Fletcher & Company houses three appraisers that are associate members of the appraisal institute and one appraiser that is a CCIM candidate.

17.? Will the market value equal assessed value?

While most states support the concept that assessed value approximate estimated market value; in practice, this often is not the case. Examples include when interior remodeling has occurred and the assessor is unaware of improvements, or when properties in the vicinity have not been reassessed for an extended period.

18.? Shouldn’t market value approximate replacement cost?

Market value is based on what a willing buyer likely would pay a willing seller for a particular property, with neither being under pressure to buy or sell. Replacement cost is the dollar amount required to reconstruct a property in-kind. Rarely are they the same number.

19.? My broker performed a market valuation. Why do I need an appraiser to perform one?

There are many reasons why valuations are required to be done by appraisers. First and foremost, the appraiser is an independent, third party. Many times, the appraiser is the only one in the transaction that does not have a vested interest in the outcome. This is the reason for the creation of the appraisal industry in the 1930’s. Another important difference between a broker’s valuation and that performed by an appraiser is that a licensed appraiser is bound by USPAP, whereas a broker is not.

20.? What are the differences between an informal appraisal and a formal one?

Those outside the appraisal profession have different interpretations of formal and informal reports. When a client simply wants “a number” and not a long document, he/she will often call it an informal appraisal. Those outside the appraisal field often refer to the old “letter of opinion” report as an informal report, although terms such as “update appraisal”, “recertification of value” and “evaluation of real property collateral” have also been used. When USPAP became effective in the late 1980’s, appraisers no longer used this terminology because a letter of opinion and the derivatives above became a violation of multiple USPAP regulations. Now known as the restricted report format, appraisers are required to do substantially more work to issue this type of report.

21.? I’m told there are three types of “formal” reports I can usually order. What’s the difference?

The final appraisal product delivered to you depends on the type of report specified by your agreement. The parameters of the three types of appraisal reports are defined by USPAP. The primary difference is in the terms describe, summarize and state. Describe means to provide a comprehensive level of detail, summarize is providing a more concise presentation of the information and state means to provide a minimal presentation of the information.

For “formal” reports, USPAP dictates that appraisers can issue three types of reports.

Self-Contained:

In this report option, the appraiser provides all of his/her data and rationale that was used in the development of the appraisal. All conclusions and data sources are fully disclosed and discussed. Two practical tests can be used to determine if a report is a self-contained document:

1. The content of the report fully describes the data, reasoning and each conclusion to such a degree that there is no need to consult other data sources or to inquire how the appraiser reached a conclusion.

2. Information sources cited within the report are included in the document, within reason. Citing a book does not require the inclusion of the book in the addenda, but market studies or other material articles cited in a report should be included, especially if the appraiser relied upon them for supporting important conclusions. This is the type of report most often needed for commercial property lending.

Summary:

In the summary report, the appraiser summarizes his/her findings rather than fully describing them. This is a much shorter report than a self contained and many lenders accept this reporting type. Most residential appraisals are done on forms that are summary reports along with non-complex commercial assignments. The appraiser may summarize the data and his/her conclusions without explaining the full reasoning behind them.

Restricted Report:

This is the shortest type of report. A restricted report only states the conclusions of the appraiser with no explanation on how they were derived. Restricted reports are generally used internally or when a value must be reported quickly. Many clients order restricted reports when time is of the essence and then have them upgraded to a summary or self contained in the future.

An important caveat is that USPAP does not allow a restricted report to be used by anyone other than the client or someone intimately familiar with the property, so if the appraisal will be viewed by other third parties, a summary or self-contained report must be prepared. Appraisers cannot “recertify” this type of report to any other lender.

22.? What type of report do I need?

The appraiser is in the best position to tell you what type of report you need. He/she is required by USPAP to determine the scope of the assignment, the function of the appraisal and use of the report. To do that, he/she will need to understand your needs, so the appraiser is in the best position to recommend one or more of the above choices and to counsel you on what choice(s) would be inappropriate.

23.? What is the difference between a valuation and an appraisal?

The words valuation and appraisal are used interchangeably. There is no difference between them. The confusion began when lenders started using the term “evaluations” in the early 1990’s, implying that they were not appraisals. Soon, the “e” in evaluations was omitted. This issue has been addressed at length by the appraisal community and the Appraisal Foundation (the creators of USPAP) and an evaluation was found to be an appraisal. As discussed earlier, there are six possible combinations of appraisal and report; evaluations are not among them.

Fletcher & Company is the leading provider of Atlanta Commercial Appraisal Services in the Southeastern US. Virginia Konrad writes and comments about Internet business news and information on a regular basis, publishing material across several news channels and social media outlets, including Northern Virginia Business News.

Building a Home Hiring the Right Company(s)

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No one needs to tell you that building a home is a large endeavor. It’s one of life’s greatest, and though it’s a very daunting one, it’s also a lot of fun. Though, if you want it to be more of the latter than the former, you have some very important decisions to make. It all starts with choosing the right company. This can be extraordinarily difficult if you haven’t built a home before. There are some traits that every company should exhibit if they’re going to get the contract, and we’ll point some of them out to you in hopes that you make the right decision.

We’ll also give you some things to think about as you’re getting everything started, as well as things to look out for as the project moves along.

Which Company?

When you’re designing and building a home, you’ll want to choose the company that is easy to work with and has the aptitude to get the job done. Both of these go hand in hand, and neither should be sacrificed for the other. It can be hard to test whether or not they’re easy to work with, but a lot of that has to do with how well they interview. Their work should speak for itself; it’s important that they have a fantastic portfolio that -wows- you. Considering that your home is a place that you’re going to be spending a substantial amount of time in, you have to be thoroughly impressed with their work before you proceed.

These days, companies should also be very versed in energy-efficiency. Not only should they be very knowledgeable when it comes to the Department Of Energy’s standards, but they should also be concerned with things like SEER ratings, ENERGY STAR products, and some of the most proficient techniques for insulation and preventing air leakage.

Architects and Designers

Some people find that it is best to avail the services of an architect, others may not. This is something that you’ll want to determine for yourself. It should be said that there are a lot of plans out there that may be perfectly fine. Be sure that you consult with the winning bidder, as they may have some concerns that will help you frame an opinion. The company may also have some architects that they like to work with. This only heightens the reason why talking to them first is the best idea.

As far as interior design goes, you have the option of bringing in your own or using one that the company has. Interior design is important, and most people find that bringing in their own is a good idea, though you may find that the builder’s company is a bit cheaper, though there is the chance that they’re not as good. But, the builder’s company work better together, and that’s something that you should think about.

Building a home requires many different facets, though if you keep a level-head about it all, you’ll find that it’s one of the most fulfilling things that any person could possibly do.