article thumbnail

Purchasing & Developing Land - Part 5 - Reselling It - Raw or Developed

Eppraisal

Whether you decide to hold it and sell when real property values climb or -- alternatively -- develop the lot to convey at a higher price, you are subject to forces of market, timing and competition. By contrast, a homebuilder acquires raw land to build on and sell when home values are high.

article thumbnail

Navigating the Appraisal Process – What You Need to Know

Simonson Real Estate

The appraiser’s role is to provide arm’s length, third-party, neutral, and impartial opinions about the value of real property and provide assistance to those who own, manage, sell, invest in, or lend money on real estate. Value Scenarios. What is Market Value As Is and When is it Used? Prospective Values.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Helping Lenders Navigate the Commercial Real Estate Appraisal Process

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. Clarify What Value or Values are Needed. Prospective Market Value As Completed and As Stabilized. This simple step ensures the proper bid request is made.

article thumbnail

Fee Simple Estate vs. Leased Fee Estate

Dart Appraisal

Based upon the definitions from the Dictionary of Real Estate Appraisal (below), anytime the subject is encumbered by a lease, including a partial lease, a short-term lease on a single-family residence, a ground lease, or a billboard lease, the leased fee property rights must be valued. The ownership interest in a leased property.

Tenants 67
article thumbnail

Yield on Cost: A Beginner’s Guide

Property Metrics

The yield on cost is a commonly used metric when evaluating real estate development and value-add projects. The yield on cost is widely used by commercial real estate professionals to measure the return on a real estate development or value add project. Yield on Cost Calculation: Development Example. cap rate.

article thumbnail

UNDERSTANDING THE TRUE COST OF HOMEOWNERSHIP

Will Springer Realtor

OLYMPIA HOUSING UPDATE Despite a short session this year, lawmakers in Olympia were successful in passing 11 known pieces of legislation that serve to help home buyers and sellers as well as landlords and tenants. 1 with a combined 75,274 units newly completed or being developed. Possibly the most notable bill to reach Gov.

article thumbnail

12 Questions to Ask Your Real Estate Agent

PennyMac

Many home buying and selling markets contain micro markets driven by the features of individual neighborhoods. Understanding unique issues like the schools, historic district designations, development plans, and even traffic patterns is essential. Lee encourages buyers to check out their agent’s marketing chops.