With commercial property appraisals, we offer work on most major property types and uses.  Again, most of this is lender related work which is regulated by the federal regulations (USPAP), the state government and other regulatory groups. 

In this process, the lender selects the types of analysis and level of reporting that is appropriate for their use.  For other situations (non-lender assignments), the client and we agree on these items at the time of engagement.  Fees are based on complexity, distances and time allotted for such gathering of data and analysis.  Of course, some properties would be far more complex than others... allowing for location, equipment, going-concern interests and the like.

On the residential side of the business, we provide all standard Fannie Mae Appraisal Forms, as well as the newer Appraisal Institute forms for individuals and non-lender related use.  Please contact us for a quote.

I think it's a total misnomer to say home values are nose-diving in some markets.  "Median Home Price" statistics that everyone keeps quoting as falling is reflecting only the homes that have sold... that the average sales price is less than some prior period.  This is just a glance at averages and it should be presented this way... not that the whole market (implying that all homes or all property) is dipping.  What it simply shows is that affordable homes are still being sought and closed (now along with a large number of foreclosures or REO sales)... and is a natural part of any economic cycle but just becomes more evident in a recession. 

The more expensive and exclusive homes are not selling much now.  Thus, sometimes we have a problem with finding higher end comps in some counties or areas.  But to say average home prices in Atlanta are off... say 10%... that does not mean depreciation is occurring in the market.  It's a misleading point and the news organizations are not clarifying this point.

Appreciation or Depreciation (known as market change) is tracked only by studying arms-length transactions on homes that are selling again or repeatedly... that are not under duress nor have been significantly enhanced by remodeling... tracking the amount of change over time. 

Value is a function of perception.  If our government continues stoking the fires of fear and running our jobs overseas, etc., then people will grow increasingly less likely to spend, to buy, to invest and that deepens the slow down.  Generally, people have a hard time just paying for insurance, gasoline and mortgages... so it is normal to expect them to cut back, try to pay less and ask less for everything, including property, when possible.
 

If owners back down on their listing prices and the homes sell for less than originally listed or what they even hoped for... that is not necessarily depreciation... agreed?  Just because a seller lowers his asking-selling price and still makes $30,000 profit (over his original cost and investment) instead of a hoped for... say an $80,000 profit... appreciation is still occurring. If it had been a 4 year period between his purchase and then selling the house, the appreciation rate indicated would be calculated at 3.7% annually (on a $230,000 final sales figure amount).  He may not have made the additional $50,000 he had hoped for but it still shows appreciation in the market.  If he sales the house at his original purchase price then it shows a flat return at 0%.  If he loses his job and must sell the house, or due to divorce, or back taxes, etc., then it would no longer qualify as a study property because of the duress and not arms-length.

Homes that are under duress or foreclosed can not be included in such a study.  This is because our qualifying of both terms Arms-Length and Market Value clarify this and excludes a buyer or seller being under duress of any type.

It was announced last week (week of 2/23/09) that in some markets, REO's constitute one-half of the properties sold.  This can drive down values, but it still would be evident with home resales that the whole market or pockets of the market are declining..... but this only would be seen in the non-duress transactions when they do occur.  Luckily, our MLS services generally explain such status on most homes along with remodeling steps recently taken, etc. (both important factors in such an analysis).

I tell my guys that they can't use REO comps under a normal Market Value definition because it clearly precludes such motivations as duress.  If a client wants REO sales considered or used (on REO reports, etc)... we simply change the definition to that of one of the FDIC provided for Disposition or Liquidation Value... which allows such motivations of faster exposure times and duress, etc.  To me, that is the only way to make all this fit in USPAP (our controlling federal regulations).