Comp checks and bidding wars are common in some circles of commercial work. CGs and MAIs have been taking on skippy trainees just to get the lowest bids and still make money.
Do you have any evidence of this? Exactly what is your source of this information, and how much do you have? Your statement is a broad generalization. Sure there might be a few, but I would bet my license that this is not common.
I worked for and know MAI appraisers and have never heard of or seen that.
Commercial work is very varied and unless someone works for a large firm they are most likely specialized in one certain property type therefore making the "comp check" extremely difficult.
Mr. PL 1957 works for a large firm where they might have guys who only do certain types of properties (I don't know, just guessing), but most CG appraisers will have a variety of properties to appraise in a given time period.
Late last year, on my desk, I had a grain elevator, a run down motel, a warehouse, two shopping malls and a bar. The properties were anywhere from 1 mile to 120 miles from my office. There is no way to give a "comp check" on any of these properties.
I have a current assignment where I could actually give a "comp check" sort of. It is an office property where I am to determine Market Rent. I know that the office market in this particular area is approximately $18-25/SF and I can say that over the phone because that is my experience and knowledge and that is factual. However without
analyzing the subject property's lease and the
comparable property terms can I accurately give a close range of value over the phone without a lot of work. If I were appraising this property I would have (assuming 5,000 SF) a PGI of $81,000 to $125,000. I then need to know who pays what, but let's assume an absolutely net lease less management, R & M and Reserves and good condition with no deferred maintenance. So I am going to guesstimate 8% owner cost. So now I have a range of GI of $74,520 to $115,000.
Now what is the cap rate.....um I have no idea, but let's guess 8 to 12%. So now I have a value range of $621,000 to $1,437,500.
There is your comp check on a simple office building.