Complex or Non-Complex

[bfriendly]

Yes, I should know this so feel free to take all the jabs, but I have to ask anyway. I am hoping to get an answer in "Non-Complex" lamens terms:icon_mrgreen:
What is the difference between Complex and Non-Complex appraisal assignments? I have seen this in class and am sure I have seen it in the real world, but I guess I am confused as to the difference between "Complex" and "Difficult". IS there a Black and White answer for this?....I have done alot that were difficult, but not sure that they were Complex by definition...........I did search the posts for this, but cannot find my answer. Please help....and thank you!

 

[Randolph Kinney]

Yes, I should know this so feel free to take all the jabs, but I have to ask anyway. I am hoping to get an answer in "Non-Complex" lamens terms:icon_mrgreen:
What is the difference between Complex and Non-Complex appraisal assignments? I have seen this in class and am sure I have seen it in the real world, but I guess I am confused as to the difference between "Complex" and "Difficult". IS there a Black and White answer for this?....I have done alot that were difficult, but not sure that they were Complex by definition...........I did search the posts for this, but cannot find my answer. Please help....and thank you!

Atypical is the definiton of complex for appraising. Therefore, any element that is atypical, you have a complex assignment.

For example, any thing besides fee simple would be considered a complex appraisal.

 

[Lee Lansford]

If there "ain't" any comps for the Subject, it's a complex assignment.

Any assignment for which there is an over-abundance of good market data, the assignment isn't too difficult.

 

[PropertyEconomics]

This is one of the most difficult questions to answer and one of the most debated among appraisers. Dont feel bad at all ... its a very very difficult question to answer correctly.
So difficult Im not even going to try. Its why I became Cert General .. it matters not to me.

 

[Vegan702]

NV has a definition of complex. I guess anything that doesn't fit that definition is not complex.

 

[Eli Weiss]

You should identify a complex appraisal, the same you identify that your regular fee just wont cover the time you have to invest in a given assignment. (not including due to travel times).....

So if you feel like asking a higher fee for an assignment, then its complex....

 

[PropertyEconomics]

Atypical is the definiton of complex for appraising. Therefore, any element that is atypical, you have a complex assignment.

For example, any thing besides fee simple would be considered a complex appraisal.

Mr Kinney ... if "atypical" is the measure .. then about 85% of New Mexico is complex.

 

[Oregon Doug]

This is one of the most difficult questions to answer and one of the most debated among appraisers. Dont feel bad at all ... its a very very difficult question to answer correctly.
So difficult Im not even going to try. Its why I became Cert General .. it matters not to me.

As a matter of enforcement, it really can't be answered. Just remember that the complex part referrs to the PROPERTY that's being appraised - NOT to the appraisal.

By way of example: Appraising a 99 year leasehold interest in a vacation cabin on BLM/forest service land is a simple assignment ('cause we got lots of 'em) to me but a two bedroom condo would be a complex property in my rural market area because they don't exist. Basically, "one size dosen't fit all," so the definition of "complex" varies from market to market.

I know that's about as clear as mud, but it's the best I got.

Oregon Doug

 

[Randolph Kinney]

Mr Kinney ... if "atypical" is the measure .. then about 85% of New Mexico is complex.

You may have a point. For example, Greg Boyd and Ray Miller post many examples that are complex that involve anything from location, use, architectural style, size, easements, construction, etc.

I had one that was adobe brick construction. That may be common place in New Mexico but not in Carlsbad near the coast.

I had another one where the current use was not the highest and best use.

I guess another way to say what is complex is to look at what is not complex like a cookie cutter neighborhood with uniform GLA size, style, lot size, age, zoning, etc. Now if you had a house in that neighborhood, for example, that was added on to that made it 1000 SF GLA more than the largest home and there were no comps for miles, that would be complex too.

 

[Greg Graybadger]

Each state Board can define Complex and Non-Complex, as they deem appropriate. The Georgia Real Estate Appraisers Board does not define these terms in their rules, as far as I can find. However, Rule 539-1-.01 (6)apparently indicates that they will supply a declaratory ruling if you request it in writing. I would suggest that you do so. Typically, the definition will state that non-complex has an active market of essentially identical properties. Then you are faced with defining "essentially identical" or whatever terms they use. It can be tedious, but since you are prohibited from appraising complex properties over $1M, you need to get a definitive answer or turn down such assignments. Good Luck.