Top Appraisal Trends. Time to Complete, Speed and Customer Satisfaction Survey

by Frank Westerman, Research Trend Cons | ‎Saturday, March 15, 2014, 4:37 PM (CDT)

Corporate and Business Trend Research 2013-2014

APPRAISAL PERFORMANCE TRENDS 2014

Data based upon interviews, public information and experience reports from appraisal clients. Information is not considered exact of a general response study of appraisal trends and performance. Survey is based upon a mid-sized commercial appraisal, with hypothetical results on a commercial retail, office and industrial properties, in $1,000,000 to $4,000,000 value range.

We noted that the pricing of appraisals seemed to track the economy of the states. For example in Texas, less expensive appraisers are in demand because values and fees of most appraisal firms have gone up. In Arkansas, appraisers were slower in delivery of product, but again appraisal firms with low cost were preferred. In New Mexico, a "non disclosure state" time to complete appraisals was slower because of a general lack of open data, but appraisers such as one appraiser won the day with quick and less expensive reports. We should point out that some appraisal times and prices were lower and some higher than the "range trends" noted here, but the general conclusions are our opinion based upon our work and experience and over 50 years experience in the business world. When those who order appraisals were asked what the rank of most importance, length and detail of report was ranked below speed and low cost.

STATE	Average Time to Complete Appraisal	Cost Range	MAI or qualified appraiser	Satisfaction and competence	Comments
Arkansas	8 weeks	$3,500 to $7,500	MAI	Average to Good	Reported lack of market data often delayed research. Average start time 13 days.
Alabama	7 weeks	$3,800 to $7,800	MAI	Good	Key firms had more data. Average Start time 12 days
New Mexico	6 to 7 weeks	$3,200 to $5,100	MAI	Fair to Good	“Non disclosure state” data delays. Average start after engagement 14 days.
Ohio	5 to 6 weeks	$4,100 to $7,200	MAI	Good	Average start after engagement 12 days
Texas	5 to 8 weeks	$4,500 to $8,000	MAI	Good	Average 8 days before beginning
*bootheglobalperspectives.com for more detail*
Texas: Best was a firm with average completion time only 8 business days. Average cost 28% below other firms. Typical time to start after engagement 1 day. High customer satisfaction. Reports all signed by MAI.
New Mexico: Noted on firm. Average completion time 8 business days. Average cost 25% below competition. Average time to start after engagement 2-3 days. High customer satisfaction.
Alabama: Found one appraiser with average completion time, 7 days. Average cost 25% below competition. Average time to start after engagement 3 days. High customer satisfaction
We noted builders and developers valued speed of return and low cost of importance.
Weather had negative impact on appraisal orders during January and February.

OTHER TRENDS:

RETAIL, OFFICE AND APARTMENT TRENDS, last quarter of 2013

Retail building occupancy up .3% during the quarter. January and February of 2014 slightly slower, but still up-trending nationally.

Office Rents up .4% during the second quarter of 2013, appear to showing slow uptrend in early 2014.

Apartment trends grew by increase of effective rents of .7%, in late 2013, and 2014 continues to show slow uptrends in occupancy and length of leases.

Hotels seemed to continue to show higher occupancy and appraisal values as an industry are strong.

Hospitals showing some transition pains as new law implemented