Gregory Peck and Associates is a full-service appraisal firm providing commercial and residential real estate appraisal and consulting services in Murfreesboro, TN. We have been appraising real estate in the Middle Tennessee area for over 40 years. Our real estate appraisers are state-certified and current members or a candidate for designation with the Appraisal Institute; thus, our appraisal work is performed in conformity with and subject to the Code of Ethics and Standards of Professional Practice of the Appraisal Institute. We are also “State Certified General Real Estate Appraisers” under the State Licensing and Certified Real Estate Appraisers Law, which requires that our appraisals meet the Uniform Standard of Professional Practice (USPAP) as promulgated by the Appraisal Foundation.
Our appraisers are known for providing well-researched and documented appraisal reports that comply with USPAP. We can complete any real estate valuation assignment, and we deliver our results on time. Our reports are designed using the industry’s best tools of the trade to deliver accurate appraisal reports that are easy to read and understand with high quality exhibits.
We provide real estate appraisal services for a variety of municipals, banks, accountants, attorneys, financial advisors, and private users. We will provide you with the best possible service.
We provide both commercial appraisals and residential appraisals in a detailed narrative format or on standardized forms depending upon our clients’ needs. Two report types are possible in compliance with USPAP. While all appraisals require a complete appraisal-analysis by the appraiser, the degree in which the details are reported to the client is dictated by the report type.
Restricted Appraisal Report
A Restricted Appraisal Report contains minimal detail and is intended to relied upon by the client only, not any other party. This is the least common appraisal report type because it does not satisfy the needs of most lenders. However, when a client does not have time to read a lengthy, detailed analysis, this can be an excellent solution. A common situation exists when a client just wants the “number” but does not want to see the analysis that led to the value conclusion. On January 1, 2015, the Appraisal Institute Standards of Professional Practice went into effect. This legislation allows state certified appraisers to use the Standards of Valuation Practice, other than USPAP, when performing appraisals for non-federally related, non-mortgage lending transactions. Therefore, appraisers can effectively and efficiently meet their clients’ needs without having to meet the extensive requirements of USPAP while maintaining the highest levels of appraiser ethics and competency.
Appraisal Report
An Appraisal Report contains a moderate or extensive level of detail. This is the most common appraisal report within the industry because it satisfies the needs of lenders and large institutions. Appraisal Reports can have one, two, or three approaches, depending on the situation of the property and intended use of the appraisal.
Consulting Letter
We consult with our clients on various real estate related problems ranging from property dissolution to eminent domain problems that require consultation as opposed to an appraisal. Referencing Advisory Opinion 21 associated with USPAP, we consider this a “valuation service when acting as an appraiser”. Three rules from USPAP still apply: Ethics Rule, Competency Rule and Jurisdictional Exception Rule. No standards apply in these assignments; compliance with the Record Keeping Rule and Scope Of Work Rule is not required in these assignments.
As defined in USPAP, an appraisal is the act or process of developing an opinion of value. The valuation process is a systematic procedure the appraiser follows to answer a client’s question about real property value.
The first step in the valuation process is to identify the problem. This sets the parameters of the assignment and eliminates any ambiguity about
the nature of the assignment. In this step the appraiser identifies the client and intended users of the appraisal, the intended use of the appraisal, the purpose of the assignment, the effective date of the opinion, the relevant property characteristics and the assignment conditions (extraordinary assumptions or hypothetical conditions).
The scope of work is the amount and type of information researched and the analyses applied in an assignment. After the problem to be solved is clearly identified, the appraiser must next determine the appropriate scope of work to solve the problem. The scope of work must be clearly disclosed in the appraisal report.
In this step the appraiser gathers general data on the market area and specific data on the subject and comparable properties. The appraiser collects general data related to property values in an area to understand the economic climate in which properties compete and the interacting forces that cause values to increase, decrease or remain stable. Specific data are details about the property being appraised (the subject property) and comparable properties that have been sold or leased in the local market. Land and building descriptions are specific data that help an appraiser to select comparable sales and rentals.
In the analysis of general data, national, regional and local trends are emphasized. Supply and demand data are studied to understand the competitive position of the property in its market. In an analysis of specific
data, a set of properties most like the subject property is studied. The analysis of comparable properties helps an appraiser extract specific sale prices,
rental terms, incomes and expenses, rates of return on investments, construction costs, economic life estimates and rates of depreciation. These figures are used in the calculations that result in indications of value for the subject property.
Highest and best use is a critical step in the development of a market value opinion. In highest and best use analysis, the appraiser considers the
use of the land as though it were vacant and the use of the property as it is improved. To qualify as the highest and best use, a use must satisfy four criteria: it must be legally permissible, physically possible, financially
feasible and maximally productive. The highest and best use is selected from various alternative uses.
Market analysis provides the basis for an appraiser’s conclusions about the highest and best use of a subject property, and the remainder of the valuation process follows from these conclusions.
A land value opinion is formed through the application of a variety of methods that are derived in varying degrees from the three approaches to value. The most reliable procedure for arriving at a land value estimate is sales comparison. Sales of similar vacant parcels are analyzed, compared and related to the land being appraised. If sufficient sales are not available for comparison or the value opinion indicated by sales comparison needs substantiation, the appraiser may use another procedure such as extraction, allocation, the land residual technique, ground rent capitalization, or subdivision development analysis.
The appraiser begins to derive an opinion of property value using one or more of the three approaches to value.
1.) The Cost Approach
2.) The Sales Comparison Approach
3.) The Income Approach
The approaches employed depend on the type of property, the use of the appraisal and the quality and quantity of the data available for analysis.
In reconciliation the appraiser analyzes alternative conclusions and selects a final opinion of value from among two or more indications of value. A
thorough review of the entire valuation process may precede reconciliation.
In reconciliation an appraiser draws upon his or her experience, expertise and professional judgment to resolve differences among the value indications
derived from the application of the approaches. The appraiser weighs the relative significance, applicability and defensibility of each approach and relies most heavily on those most appropriate to the intended use of the appraisal.
The conclusion drawn is based on the appropriateness, accuracy and quantity of all the evidence in the appraisal. When a final opinion of value has been derived, the immediate objective of the valuation process has been accomplished. However, an appraisal assignment is not completed until the conclusions and findings have been stated in a report and communicated to the client.
An appraisal assignment is completed when the conclusions and findings have been stated in a report and communicated to the client.