Have you ever been faced with two appraisals done within just a few months, but reach very different values for the same property? Bankers usually focus first on the approaches to value, especially the comparables and also the cap rate or vacancy rate used within the income approach. A group of appraisal sections outside of the approaches to value often hold the clues to why two different value were achieved. This program looks at these other sections and how to effectively analyze them as part of the appraisal review process.

Specific subjects that will be covered during the seminar:
• Why the ownership interest (fee simple, leased fee, etc.) matters and can change the income approach conclusion
• Key components of highest and best use, and the conclusion does not always match your borrower’s plan or the existing use of the property
• Don’t skip over the assumptions and limiting conditions as so much “boiler plate”
• Identify the difference between hypothetical conditions that you need versus those to avoid
• Why area and economic data should be somewhat similar among different property types in your market, and why some data should be uniquely tailored to the subject’s property type
• Other common appraisal deficienci