Uses of Appraisals, Consultations and Reviews:
Appraisal reports provide estimates of market value for loans, divorce settlements, bankruptcy, estate and tax planning, asset distributions, arbitration, individual property owners in consideration of a proposed sale of the property, etc. Appraisal reports are the most common report obtained from appraisers, and provide an estimate of market value along with a sufficient amount of data to support the conclusion typically, the estimate of market value is the primary need for the user.
Consultation reports involve an opinion of market value, but also solve some other problem – at what price do I list my property in order to sell it for market value (appraised value), and what conditions are present in todays market which may impact value trends during the next 3 to 12 months; should I sell my farm as one parcel, divide it into smaller parcels, or develop it; etc.?
Appraisal review reports provide an opinion about the quality of another appraiser’s work that was performed as part of an appraisal, appraisal review, or appraisal consulting assignment – some include an opinion of value by the reviewer, some may not, it depends on the needs of the client. Examples of uses for reviews include: litigation, arbitration when each side has their own appraisals, in conjunction with purchase for the buyer as the client, risk management audits for lending institutions, conservation easement appraisals for the IRS, etc., when a second opinion is required, or could be prudent.
Appraiser Profile: Howard W. Haynie, Jr., RPRA, GAA, RAA; Accredited, and Certified General Real Property Appraiser, AL #G00486, see Howard’s resume for credentials, extensive experience, background and appraisal education; performed appraisal assignments for properties cumulatively exceeding $1.6 Billion in value.
Presently, Howard has four appraisal designations. Two are from the American Society of Farm Managers and Rural Appraisers (ASFMRA) the ARA stands for Accredited Rural Appraiser and the RPRA stands for Real Property Review Appraiser. The AFMRA awards these designations after an evaluation of educational pre-requisites, appraisal and appraisal review experience, comprehensive examination, peer review of related work, and passing grade for demonstration reports. The ARA sets the standard in regards to experience and knowledge for the appraisal industry in regards to rural properties. The RPRA is the most comprehensive appraisal review designation of any appraisal organization in the United States.
Howard also holds both appraiser designations of the National Association of Realtors (NAR) which are based on extensive educational prerequisites and appraisal experience requirements. The GAA stands for General Accredited Appraiser and the RAA stands for Residential Accredited Appraiser.
Order an Appraisal: Contact Howard via one of the two tabs at the bottom of the website page.
Contact Information:
Howard W. Haynie & Associates, Inc.
8424 Kowaliga Road, Suite C
Eclectic, AL 36024
Phone: 334-312-0693
E-Fax: 205-877-6136
Email: Howard@AlabamasLandMan.com
Scope of Work Rule: The information provided at the time of ordering the appraisal assist the appraiser in complying with the Uniform Standards of Professional Appraisal Practice’s (USPAP) Scope of Work Rule. The Scope of Work Rule requires the appraiser to identify the appraisal problem to be solved, determine and perform the scope of work necessary to develop credible assignment results, and disclose the scope of work in the report. Essentially, what is the appraisal problem, what has to be accomplished to solve the problem in a credible manner without biasing the results, and what disclosure in these regards is required in the report?
Fees: Fees are negotiable based on numerous criteria including but not limited to the type property, the type market the property is in, estimated detail and work required to perform the appraisal in a credible manner, and use of the appraisal. The use and type of the appraisal are typically the primary drivers in regards to the necessary scope of work required to provide a credible report. The amount of work expended on the assignment is of course, one of the primary considerations of the appraiser’s fee.
Except for regular clients, a binder is typically required when the contract and required items (legal description, property information questionnaire, sales contract if a pending sale, survey if available, etc.) are returned to Howard.
Appraisal Deadlines: appraisal requests are processed in the order received (the date the executed engagement letter / contract, and binder check, along with required supplemental packet information, is received). When Howard receives your packet, he will review it and call you to establish an inspection date then, he will email you giving you two dates – a target date for the written report (the target date is based on Howard’s calendar and normal scheduling of appointments) and a drop dead date (his system crashes and he works all weekend to catch up).
Appraiser Independence: Appraisals are performed in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP). Since Howard is also accredited with the ASFMRA and NAR, he is also bound to meet certain additional appraisal and ethical requirements of these two professional organizations which extend beyond the boundaries of local, state and federal laws.
The appraiser, according to numerous state and federal laws and USPAP, is required to render an independent opinion of value. No predetermined values or direction of value is allowed in-accordance with USPAP, state and federal laws. A complete copy of the Appraiser’s Certification statement is included in the contract for your review, and understanding of the independence requirements set out by USPAP for licensed and certified appraisers.
Market Value versus Market Price: A market price is the price a property sells for. Market Value is the expected price the property would bring in the market given an informed buyer and seller, and other conditions requisite to the definition of “market value”. Despite the natural tendency of owners to value their properties based on the highest selling comparable in the neighborhood, one sale (market price of one property) doesn't make the market - whether in a stable, increasing, or declining market. While real estate values do not change on a daily basis (like company prices in the stock market), the real estate market is dynamic and prices change over time (1 week, 3 months, 2 years) due to supply and demand factors, and economic events. The stock market is an efficient market, real estate markets are not efficient.
Below is the definition of market value taken from the Office of the Currency under 12 CFR, Subpart c-Appraisals, 34.42 Definitions (g):
Market value means the most probable price which a property should
bring in a competitive and open market under all conditions requisite to a
fair sale, the buyer and seller each acting prudently and knowledgeably, and
assuming the price is not affected by undue stimulus. Implicit in this definition
is the consummation of a sale as of a specified date and the passing of
title from seller to buyer under conditions whereby:
(1) Buyer and seller are typically motivated;
(2) Both parties are well informed or well advised, and acting in what they
consider their own best interests;
(3) A reasonable time is allowed for exposure in the open market;
(4) Payment is made in terms of cash in U.S. dollars or in terms of financial
arrangements comparable thereto; and
(5) The price represents the normal consideration for the property sold unaffected
by special or creative financing or sales concessions granted by anyone associated with the sale.
So, how do you get started? Click on "Order An Appraisal" at the bottom of this page. Or, if you want to speak to Howard, email or call him.
Lake Martin
Types of Properties Appraised (Property Specialization): hunting preserves, timberland, farmland, poultry farms, agricultural lands in transition to residential development and commercial use, conservation easements, agricultural facilities, vacant land and Lake Martin waterfront properties.
