Sba

[Mike Kennedy]

"Are they presented in naarative formats (I know it depends on the request)?" SEE POST 5. SOW discussion with Lender needed.

 

[DanBuck]

"Are they presented in naarative formats (I know it depends on the request)?" SEE POST 5. SOW discussion with Lender needed.

oh ok..thats understood

 

[DanBuck]

I've done a fair amount of appraisals where the SBA is an intended user. There's really no difference from a normal (summary) report. Most times the income approach isn't that meaningful and so I may not develop it. There's not a lot of rents or investment sales of 4,000 square foot office/warehouses with an acre of fenced yard, but there's plenty of sales. If it's an industrial property I may do a cost approach. Sometimes I'll do an abbreviated income approach in the H&BU just showing that based on a reasonable range of market rents the subject would have to sell at a ridiculously low cap rate (say 4-5% when small commercial properties are probably closer to 8-10%) in order to equate to the value determined by the sales comparison approach. That and the fact that all of the comparable sales were purchased by owner/users is generally enough reason to exclude the income approach.

 

[DanBuck]

I've done a fair amount of appraisals where the SBA is an intended user. There's really no difference from a normal (summary) report. Most times the income approach isn't that meaningful and so I may not develop it. There's not a lot of rents or investment sales of 4,000 square foot office/warehouses with an acre of fenced yard, but there's plenty of sales. If it's an industrial property I may do a cost approach. Sometimes I'll do an abbreviated income approach in the H&BU just showing that based on a reasonable range of market rents the subject would have to sell at a ridiculously low cap rate (say 4-5% when small commercial properties are probably closer to 8-10%) in order to equate to the value determined by the sales comparison approach. That and the fact that all of the comparable sales were purchased by owner/users is generally enough reason to exclude the income approach.

Nice. interesting this is informative. I'm guessing that the price range for such an assignment would be less than a typical one. Say a typical is at 2k this would be at 1,5K-just based on the amount of work?..

 

[DanBuck]

I've done a fair amount of appraisals where the SBA is an intended user. There's really no difference from a normal (summary) report. Most times the income approach isn't that meaningful and so I may not develop it. There's not a lot of rents or investment sales of 4,000 square foot office/warehouses with an acre of fenced yard, but there's plenty of sales. If it's an industrial property I may do a cost approach. Sometimes I'll do an abbreviated income approach in the H&BU just showing that based on a reasonable range of market rents the subject would have to sell at a ridiculously low cap rate (say 4-5% when small commercial properties are probably closer to 8-10%) in order to equate to the value determined by the sales comparison approach. That and the fact that all of the comparable sales were purchased by owner/users is generally enough reason to exclude the income approach.

 

[Michael S]

Generally no difference in pricing. If I can tell going in that it will likely be a single approach (sales comparison) I might bid lower. That's not always apparent out the outset and some clients will want an income approach anyways. I don't handle the bidding on most of my assignments so its kind of a moot point to me. Luckily my typical fee is a lot higher than $2k.

 

[DanBuck]

Generally no difference in pricing. If I can tell going in that it will likely be a single approach (sales comparison) I might bid lower. That's not always apparent out the outset and some clients will want an income approach anyways. I don't handle the bidding on most of my assignments so its kind of a moot point to me. Luckily my typical fee is a lot higher than $2k.

Yikes-Im moving to Albequrque Teddy Cruz here i come! I guess u guys have a great reputation and can charge 3k..

 

[Howard Klahr]

Dan, What is the property type?

 

[DanBuck]

Dan, What is the property type?

Not exactly sure yet..But possibly a owner occupied 1 unit retail..

 

[Howard Klahr]

Retail shouldn't be too bad. There really aren't any form reports for SBA so a narrative report is most likely. With SBA many property types have some type of a business value associated with them, but this shouldn't be an issue for retail.