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Communication key to future appraisals.

As a result of the staggering decline of property values and slow recovery of New York's real estate market, new demands are being made on the appraisal; industry.

With the uncertain market of the 90's, real estate executives must become increasingly aware of the importance of working with qualified appraisal professionals to obtain fair and accurate valuations.

The challenge then for real estate executives is to carefully select an appraiser and know how to work with him or her to achieve an appraisal that provides a clear understanding of the current - and potential - value of the property.

Make Your

Selection Carefully

The first step is to find a well-trained and experienced appraiser whose judgement you can rely upon.

A frequently used tactic is to select an appraiser who has done good work for the organization on similar properties in the past. Working with the same appraiser develops a rapport and understanding of each other's needs.

Another tactic appraiser, by virtue of special experience, have the knowledge and expertise to perform appraisals for special properties like cathedrals, stadiums or nuclear power plants.

Establish A Strong

Working Relationship

Establishing a strong working relationship based on a team effort is vital to the success of the appraisal. To operate as a team, the real estate executive or lender and the appraiser need to communicate on such matters as the clearly stated purpose of the appraisal and any special concerns the lender or executive may have about the property.

Clarifying the purpose, allows the appraiser to prepare certain forms and initiate any processes that will needed to make the valuation.

Any special concerns you may have about your property or the appraisal process should be communicated in advance to the appraiser. Does the appraiser need to know about the capacity of the local sewage system, the market competitiveness of an older building, or the cost of asbestos removal to make a proper valuation? Are you interested in other factors that might influence the appraisal process, for example, changing the use of the property, or the feasibility of a proposed development.

Work with the appraiser and communicate your needs, but never pressure him or her into a particular value. While many short term concerns may lead you want a particular value, you will be much better served by a realistic appraisal value of your property.

Be responsive to your appraiser's inquiries and recommendations regardless of whether it is a routine appraisal assignment or one that is extremely complex. An outside appraiser may raise questions about the assignment which have not been considered earlier.

Today's difficult real estate market requires real estate executives and lenders to hire and work with as highly trained appraisal professional who is a team player yet remains independent in rendering final valuations. The sharing of information and clear communication is for the sole purpose of achieving a fair and accurate appraisal.

Although appraising is not a totally exact science, it is a process of making sound conclusions based upon a number of factors including the market, the current income and /or future income potential of a property, taxes, and other influences. In its best use, professional appraising is a cooperative effort to ascertain the truest valuation possible.
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Copyright 1992, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Review and Forecast, Section II
Author:Brooks, Peter S.
Publication:Real Estate Weekly
Date:Jun 24, 1992
Words:536
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