Strengths & Weaknesses Section

[RichMahagony]

I received an e-mail from a reviewer that said this, "Include a Strengths and Weaknesses section within the appraisal that focuses on the subject property, and its product type and market on a micro and macro level."

Hes not wrong as the engagement letter did state this needed to be included, I just overlooked it. My question; an entire section on strengths and weaknesses? Not just a line or two? What does he expect me to turn in with regard to some analysis on the "micro and macro" level of each of these?

 

[Red Flint]

may help

SWOT analysis

I have a client that is now requiring a swot analysis in all appraisals. This mildly annoying (just because I don't need even more things required of me), but I generally like the idea of completing a SWOT analysis. Does anyone have a template for such a thing that they have had good success...

appraisersforum.com

 

[Tom D]

resi only, but doesn't the government put out info on what's happens in industries in general. i guess if your property is unique commercial then a micro is how deep. i suppose they don't want to finance a buggy whip manufacturer. with resi, it would be that rare row corner property with a 1st floor office or store. in the old days every corner was that way. sorry, i might be rambling.

 

[J Grant]

I received an e-mail from a reviewer that said this, "Include a Strengths and Weaknesses section within the appraisal that focuses on the subject property, and its product type and market on a micro and macro level."

Hes not wrong as the engagement letter did state this needed to be included, I just overlooked it. My question; an entire section on strengths and weaknesses? Not just a line or two? What does he expect me to turn in with regard to some analysis on the "micro and macro" level of each of these?

Ask him directly what he expects

Or just provide a paragraph of commentary and see what happens. Idk what they mean by "section" either.

 

[Elliott]

Per the Fannie Mae letter I got a few years ago, scolding me for indicating their was strong homogeneity in design, quality, and condition in a neighborhood, the proper description for a neighborhood is to say whether it has (or has not I guess) "a new community swimming pool."

 

[PL1957]

I received an e-mail from a reviewer that said this, "Include a Strengths and Weaknesses section within the appraisal that focuses on the subject property, and its product type and market on a micro and macro level."

Hes not wrong as the engagement letter did state this needed to be included, I just overlooked it. My question; an entire section on strengths and weaknesses? Not just a line or two? What does he expect me to turn in with regard to some analysis on the "micro and macro" level of each of these?

Usually a sentence or two will suffice. I used to put it in with the Summary of Salient Facts at the beginning of the report.

 

[Terrel L. Shields]

i suppose they don't want to finance a buggy whip manufacturer

Why not? They still make buggy whips, but truth is there never were any "buggy whip" manufacturers. There were leather shops that built harness, bridles, saddles, and other leather goods. But I doubt there were ever any that specialized only in buggy whips. A friend of mine bought an old saddle once, 100 years old plus. He found that the maker was still in business but not as a saddle maker but making the hardware that goes on saddles and a host of other D rings, snaps, fasteners, and other things. The company wanted to see the saddle and ended up the company historian bought the saddle and took it back to Iowa for their museum.

 

[George Hatch]

For the smaller properties I've never seen one that was longer than maybe 1/2 a page. Half of which consisting of a table showing their conclusions.

 

[Zephyr999]

Raw land has not been improved so takes most effort to get to a finished use status.

Farmland usually has some land improvements like ditches, drainage contours, field tiling, culverts for access to fields, etc.

A finished residential or commercial lot has gone thru multiple development processes, like soil compaction, grading the site, install utilities, maybe curb/gutter and driveway access point, etc.

The teardown if on a finished city lot will have all the vertical structure stuff done...might have to be relocated and cost to 'make the site vacant' should be accounted for.

 

[sputnam]

I see the SWOT analysis as more or less covering the same ground as HABU analysis. Kind of a pain to have to write them separately though... so, I don't. Unless they pay extra. More work = higher fee.