What is "Retail Value"?

[rbrienza]

What is Retail Value?
I came across the term in a report that I was reviewing on the same subject property, the final value of the subject was given in "Retail Value". The report was originally done in 2005, my report was done in 2008. I have never heard the term as it relates to appraising real estate. I researched the term and came up with nothing. My supervisor, who has 15+ years as a CG, has not heard the term either.

The engagement letter asks for an "AS IS" Market Value. The original appraiser never defines what "Retail Value" is?

The original appraiser is a MAI. Is that an MAI or AI term?
I'm not trying to beat up on MAI's or AI.

Thanks
Ray

 

[JT1974]

Was your subject property a subdivision?

 

[Howard Klahr]

Or condominium development?

 

[Michigan CG]

Aggregate of Retail Values (ARV)
The sum of the appraised values of the individual units in a subdivision, as if all of the units were completed and available for retail sale, as of the date of the appraisal. The sum of the retail sales includes an allowance for lot premiums, if applicable, but excludes all allowances for carrying costs. Also called gross retail value.

 

[PropertyEconomics]

I have seen this value in several subdivision reports, however, it has always been included along with Discounted Value of Subject As Complete and AS IS Value of Subject ... never alone.
Let me guess ... the deal is upside down and the outstanding loan amount far exceeds current value???

 

[rbrienza]

This is for a vacant piece of land 1.90 acres. No subdivision. No condos. The current owner will build a proffesional office and condo it.
PE: I Dont think that the previous owner was upside down.

 

[PropertyEconomics]

This is for a vacant piece of land 1.90 acres. No subdivision. No condos. The current owner will build a proffesional office and condo it.
PE: I Dont think that the previous owner was upside down.

If it IS for a vacant parcel of land .. a call to the MAI explaining "retail value" is in order. Because now it truly makes no sense.

 

[Howard Klahr]

Once again condominium is a form of ownership. As the OP has noted in the follow-up post, the intended use of the property is for development of an office condo project. Consequently, the appraisal was likely preformed to reflect the "As Is" Value - Vacant Land, "As Complete" - Bulk Sale Value (Wholesale to a singe purchaser), "As Complete" - Upon Sell Out and the Gross Retail Sell Out Value.

 

[The Warrior Monk]

You shouldn't have to guess what it is. For summary and self-contained reports, that appraiser must

"state the type and definition of value and cite the source of the definition."

In restricted use reports, the appraiser doesn't have to include the definition, but still has to cite the source.

 

[rbrienza]

Howard... the report in 2005 was not for it was just for vacant land and the new report (2008) and a new owner will develop it and condo it.

David .. this was a summary report.