All appraisal assignments will be performed in a timely manner generally with verbal value estimates available the day after the inspection and hard copies within two days.
Limited assignment fees will be charged based upon policies consistent with the client lending institution and will be discussed prior to the acceptance of such as assignment.
Fees may be higher for additional documentation required by some secondary mortgage market lenders. Appraisal fees for properties over $500,000 in value are negotiable, with the fee based upon the additional time required to complete the assignment.
Any change in fee structure will be discussed prior to the acceptance or completion of an appraisal assignment.
Fees for Small Income or Commercial Properties will be charged based upon the scope of the assignment and will be discussed on an individual basis.
Compensation for appraisal assignments will not be contingent upon the reporting of any predetermined value or direction in value that favors the cause of the client.
All appraisals will conform to the standards of the Georgia Real Estate Appraiser Board, the Appraisal Institute, Fannie Mae, and will meet FIRREA and USPAP requirements.
What is USPAP?
USPAP, which you might hear pronounced like "YOOS-pap," is the Uniform Standards of Professional Appraisal Practice. USPAP is published and maintained by the Appraisal Standards Board (ASB) of the Appraisal Foundation, a non-governmental entity charged by Congress with promulgating appraisal standards.
USPAP is revised periodically, usually annually, and almost never radically. It includes sections covering rules, such as an Ethics Rule, a Departure Rule, and a Competency Rule. It includes Standards, 10 of them, each covering in detail different functions an appraiser might perform ("Real Property Appraisal, Reporting"; "Business Appraisal, Development"). It includes 10 Statements, some retired, which are used to clarify or supplement the Standards. It also includes Advisory Opinions, such as "When does USPAP apply in valuation services?" and "Clarification of the client in a federally related transaction," which describe real-life problems and how they would be governed under the Rules and Standards of USPAP.
Every appraiser is charged with knowing and following USPAP, usually by operation of state law, and must complete Continuing Education periodically to relearn the basics and become familiar with new Advisory Opinions and annual changes to USPAP. USPAP may be considered the Bible of appraisal practice.
Three approaches to value
There are three ways to determine the value of anything, and each plays a part in property appraisal.
The most widely-used and accepted in residential practice is the sales comparison approach. This approach bases its opinion of value on what similar properties in the vicinity have sold for recently, with appropriate adjustments for time, acreage, living area, amenities and so on. It is these adjustments where the expertise of the professional appraiser becomes necessary -- no computer can tell you how much or little to mark up for a fireplace without knowing the neighborhood or even talking to Realtors and recent buyers in the area about how important that amenity is in that particular location.
Another approach is the cost approach. How much would a property cost to replace, that is, rebuild, minus "accrued depreciation," that is, depreciation that has occurred since the property actually was built? The cost approach includes concepts like "economic life" and "effective age" that are mostly of use in determining the value of special use properties, special purpose properties or properties where subsequent structural improvements greatly impact value.
The third approach to value is called the income approach. Some properties generate income for their owners -- the most obvious examples being rental properties such as apartment buildings, non owner-occupied houses and duplexes and the like. The rental income an owner might reasonably expect from a property is part of its value. For a purely owner-occupied residential property, this may not be applicable, but it can be important if the property is to be rented out or used otherwise to generate income, such as a storage facility, cell tower rental and office building.
Market Valuation Group, LLC offers commercial valuation and consulting services. Let us put 30 years of experience to work for you. We perform the following commercial services:
-Valuation of all property types – industrial, commercial, multi-family, land, special use properties, etc.
-Market and feasibility studies – comparable data verification, market rental studies, pricing studies, absorption studies, Highest and Best Use analysis, etc.
-Counseling on real estate matters – we can advise you on most legal matters pertaining to real estate. Easement valuations, bankruptcy management advice, general business valuations, etc.
-Due Diligence for your current or next investment – Cash Flow modeling, comparable data verification, document review, etc.
The MVG staff also brings experience in the valuation of vacant commercial land, right of way condemnation, construction and avigation easement valuation, and litigation matters pertaining to real estate.
At the commercial arm of Market Valuation Group, LLC, WE KNOW VALUE! Let our experience protect your investment.
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