Comp One Blog - Your Local Expert!

Twenty-two years is a long time folks! I began my real estate appraisal career in 2002. Some of you may remember those days. It was the "refi boom" and the market was hopping. That was the upside. Then there was the downside which was the rampant mortgage fraud which we had to navigate leading up to the 2007 crash. In some areas you really had to be careful that the comps you picked in appraisal reports were arms length transactions. Talk about a time consuming headache! A lot of people ask me if things were tough after the meltdown, but fortunately I was still busy, appraising a lot of HUD owned homes for one thing. As a matter of fact, I started my own company in 2007, and I'm still here.

 

I still remember being proud to say that I had been doing this five years, but over twenty definitely is something else. And, yes, after that much time you can honestly say you've pretty much seen it all; done a lot of things right, made some mistakes (we learn!), appraised the wrong house (it happens!), had clients go out of business, had great new clients show up seemingly out of nowhere, worked around the clock on huge deadlines, and watched the tumbleweeds blow and wonder if another order will ever show up.

 

Being an appraiser can be a grind, but there are a lot of upsides: being your own boss, making your own hours, meeting new people and having the priveledge to be of service. Thanksgiving was this past Thursday, and if there is one thing I can say that has remained constant throughout my career in this profession, it's that I'm always grateful to be doing what I do.

 
Contact Comp One Appraisal Services today and put our local expertise to work for you.  Based in the Globe Building at Peachtree Dekalb Airport, we are the perfect resource for attorneys, agents, homeowners, and lenders.  Thanks for reading!  

Got an appraisal issue or question?  Call my Appraiser On-Call For You Hotline at 404-245-7577.

 

This article is the best I've come across so far as to what a second Trump term will mean for the real estate appraisal profession.  If you are an appraiser, or interested in the topic, it's a great read. 

http://beyondthevalue.com/now-what-on-a-new-trump-administration

Contact Comp One Appraisal Services today and put our local expertise to work for you.  Based in the Globe Building at Peachtree Dekalb Airport, we are the perfect resource for attorneys, agents, homeowners, and lenders.  Thanks for reading!  

Got an appraisal issue or question?  Call my Appraiser On-Call For You Hotline at 404-245-7577.

What do you think about this unusually large for a home of it's age house in Murphey Candler Park?  Do you have any insights to help me price this new construction two bedroom house in Old Fourth Ward?  What is a three car as opposed to a two car garage worth in new construction?  These are all questions I spoke with agents about last month.  Got something weird?  I'm glad to take a look and see if I can provide insight.  Of course, I can always do a pre-listing appraisal if needed.  And, as always, I'm available for appraisals for cash purchases, divorce or estates.  

Contact Comp One Appraisal Services today and put our local expertise to work for you.  Based in the Globe Building at Peachtree Dekalb Airport, we are the perfect resource for attorneys, agents, homeowners, and lenders.  Thanks for reading!  

Got an appraisal issue or question?  Call my Appraiser On-Call For You Hotline at 404-245-7577.

Most of the time, the highest and best use of a property is self evident.  Every now and then however, particularly with 2-4 unit properties, the highest and best use can be a tricky question to figure out.  Add in zoning changes allowing for higher density properties, and the question can get even more thorny.  Every appraisal requires that the appraiser consider the highest and best use of the property, and there are four criteria for determining highest and best use: 

-What is physically possible.
-What is legally permissible.
-What is financially feasible.
-What is maximally productive.  

With a single family home in good repair on a typical residential lot in a subdivision, it's a no brainer, but what if the property is a grandfathered in (legal -nonconforming) triplex on a site where the zoning only allows for single family homes?  What is legally permissible in that case?  What is maximally productive?  Good question! 

If you own a property where there is a highest and best use question, or if you are involved with such a property as a real estate professional, knowledge of Fannie Mae's Selling Guide commentary concerning this issue can be very helpful. 

Please note the following concerning Highest And Best Use analysis per the Fannie Mae Selling Guide B4-1.3-04, Site Section of the Appraisal Report:  

The appraiser determines highest and best use of a site as the reasonable and probable use that supports the highest present value on the effective date of the appraisal. For improvements to represent the highest and best use of a site, they must be legally permitted, financially feasible, and physically possible, and must provide more profit than any other use of the site would generate. All of those criteria must be met if the improvements are to be considered as the highest and best use of a site.

It goes on to say: 

The appraiser’s highest and best use analysis of the subject property should consider the property as it is improved. This treatment recognizes that the existing improvements should continue in use until it is financially feasible to remove the dwelling and build a new one, or to renovate the existing dwelling. If the use of comparable sales demonstrates that the improvements are reasonably typical and compatible with market demand for the neighborhood, and the present improvements contribute to the value of the subject property so that its value is greater than the estimated vacant site value, the appraiser should consider the existing use as reasonable and report it as the highest and best use.

So in most cases, if the value of the property as improved is greater than the value of the property vacant then, per Fannie Mae, the highest and best use is the current use.  

The caveat to this that may be an unknown and something to consider, is whether the municipality will allow the property to be rebuilt if more than 50% destroyed.  You'll have to contact them to figure that out!   

Contact Comp One Appraisal Services today and put our local expertise to work for you.  Based in the Globe Building at Peachtree Dekalb Airport, we are the perfect resource for attorneys, agents, homeowners, and lenders.  Thanks for reading!  

Got an appraisal issue or question?  Call my Appraiser On-Call For You Hotline at 404-245-7577. 

If you're considering selling your home to an investor or house flipper, don't just take their estimate at face value. They are looking to get the best deal possible for themselves, not necessarily pay you a fair market price for your home. The only way to truly know what your home is worth is to get an independent, professional appraisal done before entering negotiations.

An appraisal by a licensed appraiser will give you an objective, unbiased valuation of your home based on comparable recent sales in your area, the condition of your home, any upgrades or renovations you've done, the land your home sits on, and other factors. This appraised value is what lenders use to determine how much they are willing to lend on your home. It gives you leverage when selling, whether to an investor or the open market, because you have an expert, third-party opinion of the true market value.

Real estate investors may try to lowball you with their initial offer, hoping you don't know how much your home could really fetch. Or they may use some less-than-scrupulous techniques to try to talk down the value, like pointing out every single flaw and needed repair. With an appraisal in hand, you can counter those tactics and make sure you get paid every penny your home is worth.

There is a cost for an appraisal, but it's a wise investment to avoid potentially leaving tens of thousands on the table. Don't just go with the first number an investor names. Protect yourself and your equity by insisting on an independent appraisal first. That way you can be certain any offer is truly a fair one based on market value, not just a lowball from somebody trying to maximize their own profits.


Contact Comp One Appraisal Services today and put our local expertise to work for you.  Based in the Globe Building at Peachtree Dekalb Airport, we are the perfect resource for attorneys, agents, homeowners, and lenders.  Thanks for reading!  

Got an appraisal issue or question?  Call my Appraiser On-Call For You Hotline at 404-245-7577.