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Appraisals…a rant. April 12, 2010

Posted by Erik Swanson in Articles, Research/Data, Uncategorized.
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Joel Ross’ latest post on The Ross Rant blog won’t score many points with our appraiser colleagues. I don’t necessarily agree with his sweeping assessment that appraisals are “essentially fairy tales based on a bunch unsupported wild guesses”. Most of the appraisers we have worked with have provided detailed and accurate information backed by well researched data. Our own firm has provided us with consistently solid data that’s useful to our clients. However, Ross makes valid points about much of the appraisal industry using “propaganda” to support values. As brokers, it’s a frustrating market to navigate through when a seller’s expectations have been buoyed by an “optimistic” appraisals with over reaching assumptions on lease and/or occupancy rates. With so many commercial properties near or already underwater, we can’t blame some for wanting to look to the past for support. In the end though, a property is only worth what someone will pay for it and today’s buyers are usually determining  asking prices using an entirely different and highly conservative set of data.   

Check out his blog post here.

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