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nakamura · Guest

Hallo,

When you get a real estate property report,there are many items I do not understand..

Site Influence:

It is OK to say the property is on a corner. But How the county asserssor determines whether the site is influenced by a shopping area nearby, school nearby etc. so that these site influences impcat the bottomline of the property? What exactly does it mean to influence the property? Is there a maximum distance from the property that this site must be within?

what is the difference between "owner transfer recording date", "sale date", "recording date"?

[list=3]what is the difference between "owner transfer price" and "sale price"? They widely widely differ!![/list]

[list=4]Thanks. Please let me know what is the best way to search a property, and understand the content of the search reports[there are so many terminology and jargons] in your reply. [/list]

Nakamura

nemmar · Site Admin

Nakamura,

Since it seems that you are not a licensed appraiser, I will try to explain in basic terms what an appraiser has to evaluate when doing an appraisal report on a property. County Assessor's work for the local municipality and often perform calculations and evaluations differently than an appraiser does. They use what are called "depth tables" and other standardized calculations for determining property tax rates in their local municipality zone. I'm assuming that you're referring to an appraisal report when you mention "real estate property report". It's perfectly normal for someone who is not an appraiser or does not have experience reading appraisal reports to be confused with what is on a written appraisal. There is terminology that would be confusing to you unless you are experienced in the appraisal field.

1) It is OK to say the property is on a corner? Yes, it is OK for an appraiser/assessor to say the property is located on a corner lot if that is a true and accurate statement in their report. A corner lot could have positive or negative effects on the market value of a property.
2) How does the county assessor determine whether the site is influenced by a shopping area nearby, school nearby etc. so that these site influences impact the bottomline of the property? See the details of site analysis listed below.
3) What exactly does it mean to influence the property? This means the item/aspect/factor/condition has an effect on the market value of the subject property (the real estate being evaluated/appraised/assessed).
4) Is there a maximum distance from the property that this site must be within? There is no maximum or minimum. If the item/condition/factor effects market value then that is what is important.
5) What is the difference between "owner transfer recording date", "sale date", "recording date"? Owner transfer recording date and recording date usually refer to the date the title to the real estate property is recorded at town hall as being transfered to the new owner. Sale date refers to the date the sale took place, the closing date.
6) What is the difference between "owner transfer price" and "sale price"? Generally they would refer to the same thing - the sales price paid for the property by the new owner. If there were unconventional terms, like unconventional financing or exchange of other goods or servicers, etc. between the buyer and seller, then this could account for the use of "owner transfer price" since the appraiser/assessor would have to convert that to what a conventional priced deal would have been to estimate market value.
7) Please let me know what is the best way to search a property, and understand the content of the search reports (there are so many terminology and jargons)? What kind of search are you referring to? The town hall records on a property? If so, then the best thing to do is ask the town hall employees to explain the terminology they use in their records for properties. This is because each local town may have their own system or ways to record the property information. Some cities/towns have a lot of data on each property, some have less data.

Here are just a FEW of the many aspects a licensed appraiser has to consider when evaluating a SITE. There are many more aspects/factors to evaluate with the site, building, sales comparables, market data, etc. but these are the basics for how the site will influence the property market value. Moreover, these are just a few of the HUD and FHA Guidelines for Valuation Analysis for Single Family and One- to Four-Unit Dwellings. Commercial property can gets much more detailed and intensive in the appraisal evaluations and reports.

SITE ANALYSIS
1) SITE REQUIREMENTS - The purpose of site analysis is to identify the various site characteristics that affect the marketability and the value of the subject property. Site analysis requires the following:
- Determining the desirability and utility of the site
- Determining the degree and extent to which the site, because of external influences, shares in the market for comparable and competitive sites in the community
- Forecasting the likely changes at the site because of justifiable future trends
- Appraising the current situation and knowledge of the various trends that could affect the valuation of the real property
The principal of change is fundamental to appraising real estate and to properly analyzing a site. Value is created and modified by economic, social and governmental changes that occur outside the property. Evaluate the direction of these trends and determine their effect, if any, on the current value of the subject property.

A. NEIGHBORHOOD DEFINITION
B. COMPETITIVE SITES
C. CONSTRUCTION STATUS
D. ECONOMIC TRENDS
E. LAND USE RESTRICTIONS
F. COMMUNITY SERVICES
G. TRANSPORTATION
H. UTILITIES AND SERVICES
I. NEIGHBORHOOD CHANGE CONSIDERATIONS
J. MARKETABILITY
K. SMALL COMMUNITY MARKET PREFERENCES
L. OUTLYING SITES AND ISOLATED SITES
M. STUDY OF FUTURE UTILITY
N. CONSIDERATION OF GENERAL TAXES AND SPECIAL ASSESSMENTS

Now remember, this is just some of the factors an appraiser evaluates for 1-4 family homes. Basically, anything that has an effect on market value, both positive and negative, HAS TO BE considered and included in the written appraisal report to estimate market value.