This feature article was published in Real Estate Issues in 2014.
Abstract:
The Uniform Standards of Professional Appraisal Practice Scope of Work Rule lists the assignment elements necessary for problem identification. They are as follows: client and any other intended users; intended use of the appraiser’s opinions and conclusions; type and definition of value; effective date of the appraiser’s opinions and conclusions; subject of the assignment and its relevant characteristics; and assignment conditions. These very elements, which are fundamental to correctly identifying the problem to be solved by the appraiser, are where most appraisals of big-box retail realty for assessment purposes go wrong. This article reviews these elements to problem identification and explain how most of these appraisals result in answering the wrong question.