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Why Appraisers Don’t Depreciate Land

Cleveland Appraisal Blog

What’s the difference between a newly constructed home and a hundred-year-old home? When developing an opinion of the market value of a property, what appraisers are really measuring is how much depreciation a property has suffered from, and more specifically how much depreciation the improvements on the land have depreciated.

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Eleven Types of Risk in Commercial Real Estate

Property Metrics

Similarly, leased property includes a risk that tenants will not be able to make timely lease payments as expected. Late payments can create cash flow problems for the property owner, but the situation can be worse if the tenant goes out of business and moves out of the space. Inflation Risk. Interest Rate Risk. Liquidity Risk.

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Anatomy of a Commercial Real Estate Appraisal: A Top 17 Q&A Guide

The Robert Weiler Company

The commercial real estate appraiser’s role is to produce an accurate, reliable, and unbiased estimate of the market value of a property. Market value is the most likely selling price a knowledgeable buyer would pay to a knowledgeable seller. Question 6: What is the overall commercial real estate appraisal process?

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Fannie Files Complaint Against Appraiser

Appraisal Today

Note: This update does not apply to newly constructed manufactured homes because these items must be present on all new units. ADUs can be rented out to tenants, thereby adding to the supply of housing in a community. from 0.75 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. percent from 7.67

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Navigating the Appraisal Process – What You Need to Know

Simonson Real Estate

The understanding here is the tenants could vacate and a more reliable value is provided by the fee simple analysis based on market rents. Examples: A building owner has a single lease or multiple leases with tenants. The value may be the same as fee simple, but the interest is identified as a leased fee.

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Helping Lenders Navigate the Commercial Real Estate Appraisal Process

Simonson Real Estate

In 2022, Simonson Appraisals completed a steady stream of financing assignments with planned new construction or significant proposed renovations. On several occasions, we were presented information about construction or renovation plans well after the initial assignment was started. Clarify What Value or Values are Needed.

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The Challenges of Appraising Multifamily Properties

Appraisal Buzz

Challenges often arise in how professionals figure out the overall value of multifamily homes. Because appraisals are contingencies in 43% of contracts , you must find ways to accurately evaluate these properties. This tactic uses the land’s price, plus the construction fees and minus depreciation.

Appraisal 397