The following news release was issued March 13th by The Appraisal Foundation.
Washington, DC — The Appraisal Foundation is pleased to announce that its Appraisal Practices Board (APB) has adopted “APB Valuation Advisory #2: Adjusting Comparable Sales for Seller Concessions.” The APB is an independent Board of The Appraisal Foundation, which is responsible for developing voluntary guidance on recognized valuation methods and techniques.
The APB commenced the process of developing this guidance in February 2011, by creating a scope of work for the project and soliciting industry-recognized Subject Matter Experts (SMEs), who researched and compiled applicable texts, journals, articles, coursework and other materials pertinent to this topic. The SMEs, along with assigned APB Board member liaisons, developed a draft of their work product for the APB’s review. After working with the SMEs to address any questions or issues, the APB issued its First Exposure Draft on this topic on October 3, 2011, and accepted public comments through December 2, 2011, and at its public meeting in Atlanta on December 12, 2011.
After considering all of the comments received, the APB again worked with the SMEs to address some of the issues raised in the public comments. The APB subsequently issued a Second Exposure Draft on January 26, 2012, and accepted comments through February 29, 2012. After considering all of the comments received, the APB adopted the Second Exposure Draft, subject to minor administrative edits, on March 7, 2012.
APB Valuation Advisory #2: Adjusting Comparable Sales for Seller Concessions, includes guidance on:
•When Does an Appraiser Adjust For Concessions?
•Concessions and Non-residential Property (other than 1-4 unit properties)
•Impact and Application of Concessions in the Cost Approach and Income Approach
APB Chair Gary Taylor stated, “We believe this guidance can be helpful to a large number of appraisers who may not have a great deal of education or exposure to recognized methodologies in addressing concessions.” Taylor added “This guidance, combined with another topic the APB is currently working on, Residential Appraising in a Declining Market, are thought to be timely based on the housing markets in many parts of the country today.”
To view a copy of the APB Valuation Advisory #2: Adjusting Comparable Sales for Seller Concessions, please visit the following link on the Foundation web site: https://appraisalfoundation.sharefile.com/d/s54c9756b83f43f5a.
Any questions on APB Valuation Advisory #2: Adjusting Comparable Sales for Seller Concessions or the work of the Appraisal Practices Board can be directed to Staci Steward, Practices Administrator at 202.624.3052.
Written and Published by: VanEd