Real Estate Valuation
The process of performing property valuation, most often in conformance with the Uniform Standards of Professional Appraisal Practice “USPAP” are exercised. The Scope of Work rule allows the appraiser and the client to agree on the scope of work to follow so long as the resulting appraisal is credible and not misleading. The USPAP allow appraisals to be reported in three formats:
- Appraisal Report
- Restricted Appraisal Report
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 unless agreed upon by the appraiser and client while the investigations and the due diligence utilized in estimating value do not change.
Because of the due diligence required to perform a full-scope 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 full-scope appraisal needs are met by employing the services of a geographically competent appraisal professional.
Exceptions could include:
- 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;
- When multiple like-kind properties in the same market are packaged together and efficiencies develop; or
- 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 geographically competent appraisers available or the client desires an outside perspective.
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 performs both Compliance and Technical Reviews and uses a three-level approach to appraisal review:
- The client’s appraisal report substantially complies with the USPAP and the data and methodology are reasonable – a report is prepared attesting to this opinion.
- 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.
- 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. As such, the Reviewer is also becoming an appraiser subject to the Scope of Work rule.
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.
Eminent Domain Appraisals
Valuation assignments where the purpose is to estimate Just and Adequate Compensation to the property owner following case law specific to the condemning jurisdiction. The process typically involves an appraisal of
- The real property located in the proposed acquisition,
- The real property before the acquisition, and/or
- 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.