Cost and speed affects commercial appraisers also

[Restrain]

Just finished an article in the AI magazine where they were comparing commercial appraisal reports from the 80's to today and the amount of data collection and analysis. For those of you who are residential only appraisers, a narrative is supposed to have extensive amounts of area analysis, analysis of the types of properties, absorption analysis, etc. The report showed that in the 80's, the typical report had 18 pages of these analyses. Now, they average 1 page with the reason that competitive costs and time constraints are forcing the change. This has resulted in reports that are no longer easliy reviewed with analyses that are no longer fully supported in the report.

At least we who are primarily residential appraisers are not alone in facing a downwards push on fees and a shorter time frame for completion along with reports that are not as self-contained or easily reviewable.

Roger

 

[Mountain Man]

I have noticed the same thing. What gets me is when a lender calls up wanting a quick, full appraisal. They simply do not understand the difference between a self contained and a summary, other than a big difference in time and $$. :roll:

 

[Paul Ness MAI]

Tell your clients they can only have two of the following three in an appraisal.... GOOD, FAST, CHEAP.

If they want a good appraisal done fast, it won't be cheap.
If they want a good appraisal done cheap, it won't be fast.
If they want a fast appraisal done cheap, it won't be good.

 

[Mountain Man]

:idea: I may start putting that on my letterhead. :lol: