Author: Martens Appraisal

Short Answer Fair Market Value (FMV) assumes that a buyer and seller are aware of the facts and that the price in which the property exchanges for is not the result of a forced sale. Note that Fair Market Value is not the same as Fair Value utilized by a banker, bank examiners or accountants. Definition According to IRS Regulation §20.2031-1, which is also included in the Dictionary of Real Estate Appraisal, Sixth Edition, published by the Appraisal Institute (Chicago: Appraisal Institute, 2015) Fair Market Value (FMV) is defined as: “The…

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The latest installment of our education series of articles is going to take a look at the report types that we offer. While all commercial appraisals require a complete appraisal analysis done by the appraiser, the degree in which the details are presented to the client is dictated by the report type. What is the Difference Between Appraisal Report Types? The main difference between the report types is the amount of detail presented within the appraisal. 2014 Report Type Change Overview As of 2014, there are now only two appraisal report…

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Overall Economic Activity Economic activity expanded across the United States, with the majority of Federal Reserve Districts reporting modest to moderate growth. New York and St. Louis indicated slight growth, overall, while Dallas reported robust growth driven by strong manufacturing, retail, and nonfinancial services activity. On balance, manufacturers reported moderate output growth; however, several Districts indicated that firms faced rising materials and shipping costs, uncertainties over the trade environment, and/or difficulties finding qualified workers. Demand for transportation services remained strong. Labor shortages were broadly noted and were linked to wage…

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The Martens Appraisal Self-Contained Appraisal report format is popular within the industry because it satisfies the needs of lenders and large institutions, but can sometimes be arduous to read due to the amount of information. Self-Contained Appraisal Reports can have one, two, or three approaches to value, depending on the situation of the property and use of the appraisal. Typically, Self-Contained Reports are only used in commercial valuation settings due to the amount of information presented. This type of report has more detail and information than both Restricted Use and Summary Appraisal reports.…

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Martens Appraisal summary appraisal reports contain a moderate amount of detail and can have one, two, or three approaches to value, depending on the situation of the property and use of the appraisal. They contain more information than a Restricted Use Report,  but less information thank a Self-Contained Report.  A summary appraisal report is a “complete” appraisal. The majority of our non-lender clients prefer this report type because it offers a good balance of price and report detail. Summary appraisal reports are quicker to read, quicker to produce, and have a lower cost. Martens Appraisal summary appraisal…

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A Restricted Appraisal Report contains minimal detail/content and can legally only be relied upon by the client, not any other party. This type of report is not appropriate for most appraisal situations due to the fact that it contains minimal details and content. Further, this report type may not be understood without additional information contained in the workfile that is not transmitted in the report. This is the least common appraisal report type because it does not satisfy the needs of most lenders or appraisal users. However, when a very abbreviated appraisal report…

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