Question on value in use appraisal

[PropertyEconomics]

If the appraisal was submitted to the City, it becomes part of the public record and should be available to the general public.

So JT .. I suppose the certification / limiting conditions you sign in your reports stating that publication of your appraisal report without your permission means nothing to you?

 

[Restrain]

bewert:

Dollars to donuts that the city council met in executive session to go over this deal. Land acquisition, etc are legal issues that are routinely discussed outside of the public view. That's why the discussion was so short.

As to an individual tract, you have someone who wants to buy the property. Does it enhance the adjoining property. Yes. But that is not the question. The question is what would the site be worth on the open market. Can you build something on the 4400 SF site? Is it legal to do so? Who would buy it? Yes, the adjoining property owner has a desire to purchase the site because it will create something with a significantly higher value than either smaller tract. Further, the city may be considering that the sale of this site to the buyer will result in higher sales and property taxes with the redevelopment of the site.

These issues are shown just to show the complexity of the deal. It's not a clear-cut "the site is worth zzz because the adjacent site sold for YYY".

Hope this helps.

 

[Fred]

That might just be a little unethical.

It's a public aquisition.

 

[PropertyEconomics]

It's a public aquisition.

But the appraiser remains only contracted by his client, not the public, and is not obligated to answer any questions from the public regarding that report. In my reading the appraisal was done for a private party and offered to the governmental entity as evidence of value. I do not think publication of the report has been granted by the appraiser (I am assuming here that such statement is located within the appraisers limiting conditions is present).

 

[Fred]

But the appraiser remains only contracted by his client, not the public, and is not obligated to answer any questions from the public regarding that report. In my reading the appraisal was done for a private party and offered to the governmental entity as evidence of value. I do not think publication of the report has been granted by the appraiser (I am assuming here that such statement is located within the appraisers limiting conditions is present).

First off, Tim seemd to be directing his comment to a member of the public, who as far as I know, is operating under no code of ethics. If this citizen can obtain a copy of the report, then someone else already put the report in the public domain. How is this citizen "unethical?"

If the assumptions in you post are true, then it is also true that the original appraiser did not correctly identify the client's intended use of submitting the report to a public agency for a public aquisition.

 

[Mr Rex]

Interesting question PE, but wouldn't this fall under JE? An appraiser performing an appraisal for a public entity is fully aware that it will become part of public records.

 

[PropertyEconomics]

First off, Tim seemd to be directing his comment to a member of the public, who as far as I know, is operating under no code of ethics. If this citizen can obtain a copy of the report, then someone else already put the report in the public domain. How is this citizen "unethical?"

If the assumptions in you post are true, then it is also true that the original appraiser did not correctly identify the client's intended use of submitting the report to a public agency for a public aquisition.

Assuming the appraiser knew of his clients intent to submit the appraisal to the public agency. All factors we really dont know. Just as we dont know the public agencies policies and proceedures for disposal of a remnant parcel which may not be an economic unit by and of itself. There are simply too many questions that remain unknown to us.

 

[jtinmichigan]

So JT .. I suppose the certification / limiting conditions you sign in your reports stating that publication of your appraisal report without your permission means nothing to you?

It is still public record if it was submitted to the city in conjunction with this sale. It appears that they relied upon this report when making their decision and if so, its public record.

It would be my assumption that if I completed an appraisal and submitted a report to my client for this intended use, that this report would in fact be part of the public record. This is what the client had intended in the first place.

Public record is public record.

If the city relied upon an appraisal completed for another intended use, then its their problem.

I understand what you are asking, but which limiting conditions/certification are you talking about?

Were this appraisal performed for a fannie transaction (mortgage work) I definately see the issue as noted in item #21 in the limiting conditions.

But I, nor would I think anyone else, would not use this form with these conditions for this intended use.

 

[PropertyEconomics]

It is still public record if it was submitted to the city in conjunction with this sale. It appears that they relied upon this report when making their decision and if so, its public record.

It would be my assumption that if I completed an appraisal and submitted a report to my client for this intended use, that this report would in fact be part of the public record. This is what the client had intended in the first place.

Public record is public record.

If the city relied upon an appraisal completed for another intended use, then its their problem.

I understand what you are asking, but which limiting conditions/certification are you talking about?

Were this appraisal performed for a fannie transaction (mortgage work) I definately see the issue as noted in item #21 in the limiting conditions.

But I, nor would I think anyone else, would use this form with these conditions for this intended use.

Typical assumptions and limiting conditions in narrative reports do not allow for public dissemination of reports without the permission of the appraiser via ANY media. The Internet would be a media. It may be in the public record, but you would have to go make a document request in order to obtain the report, and even then you cannot publish the report without the appraisers written approval. At least thats what my limiting conditions say.

 

[PropertyEconomics]

Interesting question PE, but wouldn't this fall under JE? An appraiser performing an appraisal for a public entity is fully aware that it will become part of public records.

He performed the appraisal, to my understanding, for the buyer of the property not for the public entity.