All Forum Posts by: Account Closed

Hi Frank! I am an appraiser that specializes in multifamily in Phoenix, and I am located in Mesa. I don't offer properties for sale. Instead, I analyze data to determine what market value is or other values based on investor preferences. Like @Joe Fairless  said, I can provide you insight of current market dynamics. I would need to ask you a few questions to understand what your game plan is and how you would like to approach the market.

You can also ask me any questions you would like. I'm happy to help. I also have references for brokers and property managers. 

I just finished listening to the podcast with Michael Quarles about direct mail. In that conversation, he mentioned that when you are checking out property, nothing beats "boots on the ground." I think he also mentioned that having somebody do that for you (if you are an out-of-town investor) is wise.

My question is - does everyone else feel this way? If you were to have someone check out a property for you, what would be the things you would have them do? What things do you wish they would do?

As an appraiser, I know what my list is - but I want yours...I want to get inside your head and think like an investor.

In Phoenix, property taxes are based on assessed values (which can differ from market value). There are published tax rates that we apply to the assessed values to calculate real estate taxes. The tax rates can fluctuate mainly by city and school district.

If you have any more questions, feel free to reach out.

Per USPAP (the rules and code of conduct for appraisers), appraisers must be able to develop a non-biased opinion of value. However, this doesn't mean you can't provide information or have a conversation of value with the appraiser. When I appraise properties, I ask the owner everything - even what they think the value is and why, and if they have information to support it. I want as much information as possible, then analyze the information to determine if it is relevant or not. At the end of the day, I need to make sure that I arrive at an independent opinion of value. A suggestion would be that when you talk to the appraiser, communicate that you understand they need to have an independent opinion of value, so you want to help by giving them your thoughts and info. They are free to take or leave whatever you present or say, just as long as they consider it.

@Eric Black and @Joe Fairless and Colleen give some great feedback. If I were to add anything, I would expand on @Joe Fairless comment and say that your "target audience" is most likely those who are renting at the property right now. Maybe surveying the tenants and/or landlord would be a good source. They are, on a level, market participants in that area.

Let us know how it works out - I would be interested to know the outcome.

@Ned Carey gives a great answer. A tax assessment is (in most states) different than a market value. I would also agree that this looks like a good cash flow deal.

The actual sale price may be secondary if you are able to get favorable terms on the owner financing. Value and price are two different concepts.

Assessed value and market value are two different things in Phoenix, with assessed values typically not a part of the negotiating process among knowledgeable investors. Like what @Brie Schmidt and @Ugochukwu Opara said, focus on developing a good cap rate indication from the market and then apply it to the subject's net operating income. When you are developing the cap rate indications, make sure that they come from similar properties that have the same (or very similar) income and expense categories as your property. A flawed cap rate may have a material impact on the value (up or down).