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A key role that ALG agents and brokers play is that of valuation consultant. Many of our clients often ask for our opinions on an array of topics concerning their real estate asset. As we wrap-up the first quarter of 2009, many of you ask: How much is my property worth given today's economic climate? If I lower the price will it help sell my property faster? How can I get a better price? I am considering selling my property can you analyze the market for me? The list of questions concerning value is endless. The client can anticipate a BOV (Broker Opinion of Value) as the preliminary step in the evaluation process.

In our constant quest to stay informed, we invited Dennis Carr, MAI of Carr, Lawson, Cantrell & Associates, Inc., a real estate appraisal and consulting firm, to our office to give a presentation on what is transpiring in the appraisal market of real property. Appraisers report value. They do not make value. It was defined appropriately that current value is the "present worth of future benefits"! In today's economic climate determining value has been difficult to ascertain due to the inability to use recent historical data as a measure of value. Currently most agents and brokers are going back approximately 6 months for comparable property information for the very reason that market data a year old does not support nor represent the current market value.

Dennis Carr stated, "Transactions are down and most of the appraisal work being conducted is with troubled assets of which 90% are residential in nature. The investor is the entity that is most likely to buy these troubled assets; therefore, a discount value is offered to allow for another layer of profit". The investor will purchase and hold the property for some time and then sell to developers at a profit at which point the new wave of builders will construct and sell for a profit. Properties that generate an income stream provide value that is quantifiable. Often we hear reference to cap rates for certain properties because this represents information about the value for an income producing property. Determining property value has not changed in methodology; however, some of the assumptions, such as the age of the comp data, should be scrutinized in greater detail. Agents with a greater depth of knowledge for a given market area are better equipped to understand what your property has to offer and how that information translates to value.