IBJNews

Appraisers have little to go on in tough deal market

Back to TopCommentsE-mailPrintBookmark and Share

Add commercial real estate appraisers to the ranks of those affected by the tumultuous state of the market. There’s plenty for them to do, but a lack of reliable data is making the job more difficult.

“It’s an extremely difficult appraisal environment today,” said Les Linder of CB Richard Ellis. “When there are few data points to hang our hats on, you really have to dig deep. It’s hard to put a market value on something today.”

The culprit is the dearth of deals involving a willing buyer and seller since the bottom dropped out of the economy in late 2008. Financing is hard to come by, and many of the deals that are happening involve sellers that aren’t meeting loan terms and are forced to sell, said Linder, who manages CBRE’s valuation and advisory group for the north central region, which includes Indianapolis. Sales involving a more traditional negotiation between buyer and seller are better for generating the type of data that can be used in appraisals.

Linder is based in CBRE’s Chicago office, which until recently handled appraisals for the Indianapolis market. But the company established a local presence for that part of the business when Christopher Jarvis moved to Indianapolis from Chicago June 1. The firm has since hired another local appraiser and expects to hire as many as three more people in the next 18 months.

Until the market stabilizes, appraisers will be operating in an environment where 20 to 50 percent drops in property values aren’t uncommon. And clients want two sets of numbers, said Linder. “They want a normal market value and they want to know what the value is if they need to sell a property within 60 to 90 days.”

There’s also been a lot of turnover in the ranks of clients. Of CBRE’s top 10 clients four years ago, only three still exist. More than 50 percent of the firm’s valuation work is still done for lending institutions, but more of that work is now done for so-called special servicers, the subsidiaries of banks that handle loans that have gone bad.

Michael Lady, a long-time local appraiser who heads the Indianapolis office of Integra Realty Resources, said property valuation tied to real estate deals isn’t as big of an income generator as it was a few years ago because of the lack of deals. As work tied to transactions has declined, a greater percentage of Integra’s work is now related to property tax appeals.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
thisissue1-092914.jpg 092914

Subscribe to IBJ
  1. Here are a few candidates for this new group, "ripped from the headlines." First up, that bizzaro State Senator Brent Waltz; secondly, the unethical Todd Huston, and his contractual arrangements scheme; Finally, but not least of all, the dishonorable Eric Turner. What sayeth you Greg Zoeller?

  2. Good day. I can't hide this great testimony that take place in my life I will love everyone to know it and be partaker that is why I always place it on answer, I am Mrs,Natalie Cuttaia by name, I live in Texas, United State Of America, I want to thank (Mr.Bruce Brandon) for his kindness upon my family life. I never knew that there is still nice lender like this on internet and earth here. Just some Months Back, I was in search for a loan of $100,000,00 as I was running out of money for feeding and rent. I was scammed $6,800 Dollars and I decided not to involve my self in such business again but a Friend of my introduced me to a loan firm due to my appearance and doings. And I told him that I am not interested of any loan deal anymore but he told me that there is still a nice lender who he will recommend me to, and I made a trial and I am most grateful lucky am I today, I was given a loan amount of $100,000.00usd, by this great Company (Bruce Brandon Loan Company) managed by (Mr.Bruce Brandon) If you are in need of a genuine or legit loan or financial assistance and you can be reliable and trusted of capable of paying back at the due time of the funds I will advice you to, contact him via: ( bruce.brandon071@gmail.com ) And you will be free from scams in the internet. All thanks to Mr.Bruce Brandon You are the one who remove me and my family out of poverty. The reason why i am doing this is that, i promise Mr.Bruce Brandon that if i truly got my loan, i will advertize his company and bring customers to his company. Contact him via ( bruce.brandon071@gmail.com )for the Loan you have been looking for..

  3. Hello, We are firm Organization formed to help people in needs of helps,such as financial help. So if you are going through financial difficulty or you are in any financial mess,and you need funds to start up your own business,or you need loan to settle your debt or pay off your bills,start a nice business, or you are finding it hard to obtain capital loan from local banks,contact us today via email mrsroseberrywilkinsfunds.usa@gmail.com So do not let these opportunity pass you by because Jesus is the same yesterday, today and forever more. Please these is for serious minded and God fearing People. Your Name: Loan Amount: Loan Duration: Valid Cell Phone Number: Thanks for your understanding to your contact as we Await Regards Management Email:mrsroseberrywilkinsfunds.usa@gmail.com

  4. The question is, where could they build a new stadium? It seems in the past year, all the prime spots have been spoken for with potential projects. Maybe in the industrial wasteland area a block past Lucas Oil? I think it needs to be close to the core, if a new stadium is built.

  5. Aldi is generally a great shopping experience. Still, I'm sure YOU wouldn't want to shop there, which I consider a positive.

ADVERTISEMENT