Inner city church appraisals

[john snyder]

Recently contracted to appraise several Catholic church/schools in the inner city.

I have appraised several churches with and without attached schools in the past however three at once hitting the market in the same urban area is a consideration/concern. My scope will have to address that.

Anyone else have experience with this supply type of problem? Probably more of these to come nationwide.

Thanks,

jbs

 

[H.B. Userman]

I was also recently contracted to appraise a church, but I believe they're just renewing the loan.

What is the purpose of your assignments?

 

[The Warrior Monk]

What's the intended use?

Also, are you dealing with market value or use value?

 

[Kali the Boston Terrier]

John:

The archdiosese just sold off most of their holdings in Detroit. So you should have a market similar to Flint, they all flooded the market at the same time.

This is the only broker that has a significant market share, they used to charge for comps and rentals. But in terms of Market Analysis and comps I would start here...

http://religiousrealestate.com/Documents/welcome.shtml

I've done a few down here if you need some help, I think you've got my number but send me a PM if you need anything.

 

[Kali the Boston Terrier]

I was also recently contracted to appraise a church, but I believe they're just renewing the loan.

What is the purpose of your assignments?

There is a bond company that financed a lot of churches that just went belly up. A credit union has agreed to refinance everything at MV. So there is a bunch of churches that will be calling real soon. Just FYI the court overseeing the bond to CU transition is requiring the appraisals to be prepared by an MAI...no exceptions. In fact they just threw out three appraisals because they were not MAI.

So if you are bidding this kind of work make sure you talk to the CU firm and not the individula church to make sure you can do the assignment. I know it seems like common sense, but you would be suprised.

 

[john snyder]

My apologies for not responding sooner.

At this time the assignment is for market value/most probable price.

Value in use I do consider in these special purpose buildings.

In recent years through AI there was a discussion on the consideration/application of the Income Approach when appraising churches. This was based on expected revenues minus expenses. In my analysis since there is not enough revenue to maintain these - what are the other alternatives?

The same use is obviously possible with a different religion. Possibly non-profits, charter school, etc. Still will have to count roof tops to see the viability of same or alternate uses. Along with the roof tops some analysis of the typical spendable income in the area.

Sales Comparison is the best answer to the appraisal problem at this point.

Brian, thanks for the reference and I will follow up with shared data from my area for your file as well.




Thanks to all

john snyder