DWiley
Elite Member
- Joined
- Apr 4, 2007
- Professional Status
- Certified Residential Appraiser
- State
- Tennessee
In my market the deeds for partial interest transfers have special notations, and using those notations we were able to identify all such transfers over the past five years. We were then able to take that data and compare the transfer prices to other transactions in the area to provide an indication of a discount amount.
In the end, after looking at over 100 transfers we were able to locate 20 or so where we could derive a good indication of a discount rate.
It was a LOT of work, but we were able to use that data for many subsequent assignments, so it was worth it. Because we had the data to support a market derived discount rate, there were a lot of attorneys in our area that would engage us for such assignments.
In the end, after looking at over 100 transfers we were able to locate 20 or so where we could derive a good indication of a discount rate.
It was a LOT of work, but we were able to use that data for many subsequent assignments, so it was worth it. Because we had the data to support a market derived discount rate, there were a lot of attorneys in our area that would engage us for such assignments.