Church appraisal

[Zorro]

I'm looking at a church appraisal and the appraiser used a burned out church and added an insurance check together to use as a comparable sale. Is this how it is normally done??

 

[Ted Martin]

No.

I can understand that comparable sales would be hard to come by, but what you have described would not be considered valid sales data. It might be useful data for support for the Cost Approach as it could possibly be used as a check, or modifier for published construction cost data for a church.

 

[Joker]

Not normally. However, it depends upon the circumstances surrounding the appraisal assignment and also depends upon the terms of sale of the "comparable sale."

In order to be conclusive, more details are needed.

 

[Analytical]

I answered in the wrong thread.

 

[Dennis J. Black ASA IFAS]

I would tend to be concerned. Church sales are available, you just need to look a little harder and wider.

 

[PropertyEconomics]

Churches actually sell quite often has been my experience. Many congregations trade churches as they grow ... with smaller churches selling to new congregations and larger to more established and growing congregations. Each time I have looked for church sales there have been an abundance of them in my market. Just how it has happened for me.
I dont think taking a burned out church and adding the insurance check would result in any form of market value indication..