Terrel L. Shields
Elite Member
- Joined
- May 2, 2002
- Professional Status
- Certified General Appraiser
- State
- Arkansas
Talked to a lawyer Friday...not necessarily a happy lawyer. Seems they have a large estate to appraise and the appraiser did include the mineral rights. The quote, more or less was, "we don't have any confidence in this.."
OK. I know appraisers are being pressured to provide numbers but the competency rules still apply. What you know might not be nearly as important as what you don't.
If you are going to appraise 'bare minerals' that have producing wells, keep in mind that even I rarely do the reserve calculations myself - I hire an "estimator" - then discount his numbers to arrive at a value.
You DON'T want to go before the state board and have to admit you didn't know what you are doing.
BTW, this is not the first one. I have had 2 Realtors call before over puzzling (to them) results where minerals were included in the valuation.
OK. I know appraisers are being pressured to provide numbers but the competency rules still apply. What you know might not be nearly as important as what you don't.
If you are going to appraise 'bare minerals' that have producing wells, keep in mind that even I rarely do the reserve calculations myself - I hire an "estimator" - then discount his numbers to arrive at a value.
You DON'T want to go before the state board and have to admit you didn't know what you are doing.
BTW, this is not the first one. I have had 2 Realtors call before over puzzling (to them) results where minerals were included in the valuation.