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Real Estate Valuation
Appraisals
The process of performing
property valuation where no departures from the Uniform
Standards of Professional Appraisal Practice "USPAP" are
exercised.
The USPAP allow appraisals to be reported in three
formats:
| 1) |
Self-Contained |
| 2) |
Summary |
| 3) |
Restricted |
Shorter, more concise reports
often translate into cost and time savings for the client. However,
regardless of the form, the process is without limit on the scope of
the investigations and the due diligence utilized in estimating
value does not change.
Because of the due diligence
required to perform a complete appraisal, except under certain
circumstances, GRHCo is not economically positioned to provide this
service outside our market area (Atlanta MSA and surrounding areas
of Georgia). We believe that, in most cases, the client's complete
appraisal needs are met by employing the services of a local and
competent appraisal professional. Exceptions could include: 1) when
the property is sufficiently large in scope that it has developed a
regional or national market, e.g., regional malls or institutional
investment-grade properties; 2) when multiple like-kind properties
in the same market are packaged together and efficiencies develop;
or 3) when a client's need justifies an increased fee to compensate
for the inefficiency resulting from traveling outside our market
area, e.g., there are no local competent appraisers or previous
valuations cause concern and the client desires an outside
perspective.
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Eminent Domain Appraisals
Valuation assignments where the purpose is to
estimate just compensation to the property owner in cases where
condemnation may become necessary. The process typically
involves an appraisal of 1) the real property located in
the proposed acquisition, 2) the real property before the
acquisition, and/or 3) the real property after the acquisition.
Just compensation includes the value of the acquisition plus
severance damages, if any. GRHCo has significant experience
completing eminent domain appraisals for utility and
transportation agencies and property owners and provides expert testimony as well.
This service is provided in the Atlanta MSA and numerous
counties throughout Georgia.
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Review Appraisals
An independent review of an appraisal report to determine
compliance with the USPAP and Supplemental Appraisal Standards,
if any, the reasonableness of the methodology employed, and the
resulting value conclusion.
GRHCo uses a three level approach to appraisal review:
| 1) |
The client's appraisal report substantially complies with
the USPAP - a report is prepared attesting to this opinion |
| 2) |
The report is determined to be deficient and/or to present
unreasonable conclusions - material deficiencies are reported to
the independent fee appraiser to bring the appraisal into
compliance |
| 3) |
Requests for revisions do not result in an acceptable
appraisal - GRHCo takes the necessary steps to correct the
deficiencies and/or conclude an independent value as part of the
review |
G. Randall Hammond & Co. provides review appraisals nationally.
The contract normally involves a tiered fee with maximums set at
each level. GRHCo has extensive experience in this area and is
uniquely qualified to provide appraisal review services. In the
end, clients reduce costs by salvaging the original appraisal as
part of the review process.
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