1 / 64

Real Estate Appraisal and Time Management

Real Estate Appraisal and Time Management. Calvin Cummings, MAI Cummings Appraisal Group, Inc. Calvin Cummings, MAI. 1983-1988: Cushman & Wakefield 1988-1998: CB Richard Ellis 1998-2002: Unicity International 2002-2002: LoopNet

braden
Download Presentation

Real Estate Appraisal and Time Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Real Estate AppraisalandTime Management Calvin Cummings, MAI Cummings Appraisal Group, Inc.

  2. Calvin Cummings, MAI • 1983-1988: Cushman & Wakefield • 1988-1998: CB Richard Ellis • 1998-2002: Unicity International • 2002-2002: LoopNet • 2002-2008: Cummings Appraisal Group, Inc. • Founder, Editor, Publisher, CB Richard Ellis National Investor Survey, 1991-1997 • Appraised properties totaling in excess of 100 million Sq.Ft. and $10 billion since 1983

  3. An Introduction toReal Estate Appraising Calvin Cummings, MAI Cummings Appraisal Group, Inc.

  4. Appraiser • Definition: • “One who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective.” 1 1 Uniform Standards of Professional Appraisal Practice (USPAP)

  5. The Valuation Process • Define the Appraisal Problem • Determine Scope of Work • Collect Data & Describe Property • Analyze Data • Estimate Land Value • Apply Applicable Approaches to Value • Reconcile Value Indications • Report Final Value Conclusion • The Appraisal Report

  6. Definition of the Problem • Identify Client & Intended Users • Intended Use of Appraisal • Purpose of Appraisal & Definition of Value • Date of Opinion of Value • Identify Property Characteristics • Extraordinary Assumptions • Hypothetical Conditions

  7. Scope of Work • Extent Property is Identified • Extent Property is Inspected • Type and Extent of Data Researched • Type and Extent of Analysis Applied

  8. Data Collection & Property Description • Market Area Data: • Region, City & Neighborhood Data • Apartment, Industrial, Office & Retail Market Data • Subject Property Data: • Land, Improvements, Personal Property, etc. • Comparable Property Data: • Cost and Depreciation • Sales, Listings, Offerings • Income, Vacancy, Expenses, Cap Rates, etc.

  9. Data Analysis • Market Analysis: • Market Study • Marketability Study • Highest and Best Use Analysis: • Site As Though Vacant • Property As Improved

  10. Land Value Opinion • Sales Comparison • Extraction • Allocation • Subdivision Development • Land Residual • Ground Rent Capitalization

  11. Apply Applicable Approaches to Value • Cost • Sales Comparison • Income Capitalization

  12. Cost Approach • Select One of Two Possible Cost Bases: • Replacement or Reproduction Cost • Estimate Costs Using 1 of 3 Techniques: • Comparative-Unit, Unit-In-Place, or Quantity Survey • Estimate Depreciation (1 of 3 Methods): • Age-Life, Market Extraction, or Breakdown • Depreciated Value of Improvements • Add Contributory Value of Site Improvements • Add Land Value (Based on H&B Use as Vacant)

  13. Cost Approach

  14. Sales Comparison Approach Research & Verify Sales Data: • CoStar: • COMPS, Commercial MLS, Property Professional • Loopnet: • Property For Sale or Lease, Recent Sales • Multiple Listing Services: • i-Tech MLS, TheMLS, MRMLS, MLSAlliance • RealQuest.com, RENTV.com, LABJ, etc. • Appraisers, Brokers, Sellers, Buyers

  15. Sales Comparison Approach Comparative Analysis: • Real Property Rights Conveyed • Financing Terms • Conditions of Sale • Expenditures Made Immediately After Purchase • Market Conditions (Time) • Location • Physical Features • Economic Characteristics • Use (Zoning) • Non-Realty Components of Value

  16. Sales Comparison Approach

  17. Sales Comparison Approach

  18. Income Capitalization Approach Income & Expense Analysis: • Contract Rent (Lease Analysis) • Market Rent (Comparable Lease/Rental Survey) • Potential Gross Rental Income (PGRI) • Other Income (Reimbursements & Misc. Income) • Potential Gross Income (PGI) • Vacancy & Credit Loss Allowance (V&CL) • Effective Gross Income (EGI) • Operating Expenses (Expense Analysis) • Net Operating Income (NOI) • Tenant Improvement Costs & Leasing Commissions • Annual Cash Flows & Reversionary Value

  19. Income Capitalization Approach • Direct Capitalization: • Convert single year’s income • Divide Net Income by Cap Rate • Multiply Gross Income by GIM • Yield Capitalization / DCF Analysis: • Forecast Annual Cash Flows & Reversion • Discount Cash Flows with Yield Rate

  20. Income Capitalization Approach

  21. Reconciliation of Value Opinions • Dependability/Applicability of Each Approach • Variations/Differences Among Indications • Weighting of Value Indications • Final Value Conclusion: • Single-Point Estimate • Value Range

  22. The Appraisal Report • Standards (USPAP, Appraisal Institute) • Report Options: • Self-Contained Appraisal Report • Summary Appraisal Report • Restricted Use Appraisal Report • Types of Reports: • Oral Reports • Form Reports (URAR, 71-A, 71-B, etc.) • Narrative Reports

  23. The Appraisal Report • Title Page • Letter of Transmittal • Table of Contents • Summary • Appraisal/Report Type • Assumptions • Purpose/Intended Use • Value Date/Definition • Property Rights Appraised • Scope of Work • Property Identification • History of Property • Location Data • Site Description / Zoning • Improvement Description • Taxes & Assessment Data • Market Analysis • Highest and Best Use Analysis • Land Valuation • Cost Approach • Sales Comparison Approach • Income Capitalization Approach • Reconciliation • Estimate of Exposure Time • Qualifications of Appraiser • Addenda

  24. Questions Calvin Cummings, MAI Cummings Appraisal Group, Inc.

  25. Time Management “Life is Not a Dress Rehearsal” Calvin Cummings, MAI Cummings Appraisal Group, Inc.

  26. Time Management - Why & How? • Live a Balanced Life • Gross a Successful Business • Allows You to Achieve Your Dreams • Set Goals, Plan, Prioritize & Execute • Project & Task Management • Getting Organized • Taming the “Paper Tiger” • Managing E-mail

  27. A Balanced Life • Spiritual • Intellectual • Emotional • Physical • Family • Professional • Financial

  28. Time Management Books

  29. Growing a Successful Business • Leadership • Management • Strategic Marketing • Lead Generation • Lead Conversion • Client Fulfillment • Accounting & Finance

  30. Achieving Your Dreams • # 1 - Set Goals • For each life or work area • Specific • Measurable • Attainable • R ealistic • Timely • # 2 - Create a Plan • # 3 - Take Action! “A Goal Without a Plan is only a Dream” “If You Fail to Plan, You’re Planning to Fail” “A Journey of a Thousand Miles Starts with but a Single Step”

  31. Planning – Using an Outline Create a Hierarchical Outline: • Level 1: Personal & Business • Level 2: Result Areas or Roles • Level 3: Goals • Level 4: Projects • Level 5: Tasks

  32. Planning – A Work Example • Work • Sales (Salesperson) • Goal: I’ve personally earned $50,000 in commissions in 2Q08 by selling 3 of my investment property listings totaling $1,700,000 and qualified for the Top 5, $25,000 Bonus Pool by July 1st. I feel tremendous confidence achieving goals I set for myself and I feel so relaxed after taking a luxurious 2-week cruise to Hawaii. • Project 1: Generate 300 qualified leads by 3/31/08 • Task 1: Order title co list of apt bldg owners in SFV area • Task 2: Send list to PrintPros to do direct mail campaign • Task 3: Have Assistant contact 20 owners per day

  33. Managing Projects & Tasks • Let Assume: • 8 Result Areas or Roles x 5 Goals = 40 Goals • 40 Goals x 3 Projects = 120 Projects ! ! ! • 120 Projects x 3 Tasks = 360 Tasks ! ! ! • How do you manage all these tasks? • Prioritize Projects & Tasks

  34. Prioritizing Pareto Principle 20% of Efforts = 80% of Results FranklinCovey ABC-123 Prioritization Scheme Stephen Covey Time Management Matrix

  35. Simplify & Focus • Simplify Your To-Do List • Focus on Top 3-5 Projects • List only Next Actions (NAs) • Work on One Thing at a Time • Avoid Procrastination

  36. Procrastination • Break large projects into smaller manageable tasks • What is the one Next Action that moves Project forward? • Eat That Frog, by Brian Tracy • Feel The Fear and Do It Anyway, by Susan Jeffers

  37. Planning Tools • Planners (FranklinCovey, Time/Design) • Swift To-Do List • OneNote & Outlook • Outlook with Business Contact Manager • AchievePlanner

  38. Time/Design Planner

  39. Swift To-Do List

  40. OneNote & Outlook 2007

  41. Outlook 2007 with BCM / MOA

  42. Achieve Planner

  43. Daily vs. Weekly Planning • Tyranny of the Urgent • Quadrant II Focus • Big Rocks “The Key is not to prioritize what’s on your schedule but to schedule your priorities”

  44. Weekly Planning - AchievePlanner

  45. Weekly Planning - PlanPlus Online

  46. Weekly Planning - Planner Pad

  47. Weekly Planning - Outlook 2007

  48. Get Organized Invest in the right equipment: • Hanging & Manila File Folders • Rolling File for Active Projects • Vertical File Holders & 3-Ring Binders • Brother P-touch labeler • Dymo LabelWriter • CardScan (Business Cards) • Xerox DocuMate 252 Duplex Scanner • PDA/Smartphone

  49. Desktop Supplies

  50. Inbox, Round & Rolling File

More Related