Frequently Asked Questions

There are a number of reasons for an appraisal. 

We provide appraisal services for:

• Purchase or Refinance of real estate
• Presale appraisals for sellers and agents
• Asset Management decisions including tax and estate planning
• Appraisal reviews
• Bankruptcy
• Divorce
• Foreclosure and pre-foreclosure analysis for mortgage holders
• Partial Interests

We specialize in single-family and 2-4 unit residential properties, vacant land, industrial, office and mixed use properties. 

Once you contact us, we will discuss your situation and define the problem to be solved. During our discussion, we will determine the depth of the analysis and research to best serve your specific needs. We will agree to a timeline for the appraisal and a fee for our services. Next, we will schedule a time for the inspection of your property. After the inspection, we will research the market and develop an opinion of value. We will write a report and deliver it to you. It is typically sent by email. After you review the report, we will be happy to answer any questions you may have.

Market value, as used herein, is defined in Chapter 12, Code of Federal Regulations, Title 12, Part 34.42(g) as:

The most probable price that a property should bring in a competitive and open market, under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably, and assuming the price is not affected by undue stimulus. 

Implicit in this definition is the consummation of a sale of a specified date and the passing of title from seller to buyer under conditions whereby:

(1) buyer and seller are typically motivated;

(2)  both parties are well informed or well advised, and each acting in what they consider their best interests;

(3) a reasonable time is allowed for exposure in the open market;

(4) payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and 

(5) the price represents a normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

Fee simple estate is defined in The Dictionary of Real Estate Appraisal, 6th Edition, 2015, by the Appraisal Institute as:

Absolute ownership is unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.

Leased fee estate is defined in The Dictionary of Real Estate Appraisal, 6th Edition, 2015, by the Appraisal Institute as:

The ownership interest held by the lessor includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires.                          

Gross rent multiplier (GRM) is the ratio of the price of a real estate investment to its annual rental income before accounting for expenses such as property taxes, insurance, and utilities; GRM is the number of years the property would take to pay for itself in gross received rent. For a prospective real estate investor, a lower GRM represents a better opportunity.