Quality Quarterly Q4 2017 - Issue #35

CLIENT SATISFACTION SURVEY

edited by Sid Womack, MAI, AI-GRS, FRICS Notable client comments:

“There was no explanation for howmarket rent was determined. There was a $ amount math error in the pro-forma expense additions. Excellent sense of urgency, but did not include explanations for market rent determination or details on the individual expense categories in the report so the conclusions was not very convincing. The Sales Comparison was fine, but the Income Approach does not show the appraiser’s reasoning for the selection of market rents. Also does not describe how the various expenses were determined.”

“In my opinion, use of the NOI multiplier should not be included in the Sales Comparison Approach and is nothing more than the reciprocal of the cap rate. Adjust your units of comparison derived in the SCA the best you can and don’t default to a NOI multiplier as a unit of comparison.”

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