The rent and lease terms on commercial/industrial properties isn't often discoverable, or readily available to the public, either. Does that mean the income approach is not relevant and can't be used?
?? Not the same thing. If appraiser discovers a contract price while pending, state it and use it in analysis. Which is different than not using the sale when it was pending, and instead using it after it closed. Do you understand the difference? .
Should appraisers also toss out all listing data because it is not closed as of the date of value? Listing can't help set the upper limit of value because they're not closed?
Who said to ignore listings? Nobody ever said to do that, including me. If the comp was pending as of effective date, use it, who said to ignore ir, or not use other listings?..
All data should be used in its proper context.
Doesn't that argue for what the data status context was as of effective valuation date?
Readers of appraisal reports for lending assignments typically are sophisticated readers. They should no how to read an appraisal report. The only issues that arise will be due to the appraiser not be clear on a particular matter, or the reader not being sophisticated.
Even appraisers can't agree on this topic and can't agree on many topics. I doubt most readers for lending understand the implications .
Yes, if done properly. Obviously some matters require disclosure be more prominent than others; e.g., USPAP requirements pertaining to hypothetical conditions and extraordinary assumptions.
The appraiser should perform their duties as an appraiser as prescribed by USPAP, state license law, etc. The appraiser cannot be responsible for a lender or AMC having an ill-trained or untrained individual reviewing the report.
