We Specialize in Farm and Ranch Appraisals in New Mexico and West Texas Areas
HARVEY LEE MORRIS III
575-636-2003 – Office
575-640-7060 - Cell
Lifelong resident of Doña Ana County
While most real estate contains “land,” not all land is valued the same way. As professionals in this business, we can help you get what you need quickly & efficiently using a number of appraisal techniques used to arrive at land value. No matter what kind of land you want valued, the Property Pros can cut through the red tape of information and get you solid numbers based on market activity.
Land valuation is often based on its highest and best use, which is an appraisal term that systematically defines a property and its most productive use. This is a major difference between casual market participants (uninformed appraisers) and professional appraisers. We will ALWAYS understand the highest & best use analysis and can suggest a level of analysis that meets your needs in terms of time to delivery & cost of service.
Land types vary by type & quality. Not all woodland is the same; not all tillable farmland is the same. Competent appraisal of land considers those factors that affect value. Anyone can look at a known land sale and make comparison to another piece of land; but not everyone knows what affects value. This is where experience makes a difference. The experienced appraiser will notice things like terrain, access, visibility or differences in zoning, flood determination & deed restrictions.
While casual observance of what else has sold can lead to an opinion, it might also be significantly wrong without consideration of all the aspects. We use multiple checklists to make sure we consider all the aspects, all the time. This efficiency gets you closer to value faster. Even if you know what has sold, let us help you make better choices.
We have provided professional appraisal service since 2001. Our appraisers are highly trained with years of experience.
• Residential valuation including multiple family and mixed use properties.
• Commercial valuation of: retail, office, industrial, manufacturing, warehouse and service type buildings.
• Valuation of agricultural farms, production, processing & storage facilities.
• Land valuation including farm cropland, hunting wood lot, development land, right of way & eminent domain.
• Business valuation and statistical comparison to industry standards.
• Investment consulting including rate of return analysis, income projections & present value analysis.
• Estate Services including planning and settlement.
• Litigation and testimony services.
• Valuation of mineral and mining.
PROFESSIONAL SEMINARS ATTENDED
Integrated Approach’s to Value, Denver CO, June 2014, Sponsored by ASFMRA
Eminent Domain April 2014, Denver CO, Sponsored by ASFRMA.
USPAP update 2014, Sponsored by Columbia Institute, Albuquerque NM, February 2014
General Appraiser Report Writing and Case Studies, sponsored by the Appraisal Institute, Dallas TX, October 2013
15 hour USPAP, Sponsored by Columbia Institute, Albuquerque NM 6/2013
Highest and Best Use, sponsored by ASFMRA, Denver CO. 8/2012
USPAP update 2012, February 2012, sponsored by ASFMRA.
The requirements of Yellow Book, August 2011, Sponsored by the American Society of Farm Managers and Rural appraisers, Denver CO.
Analyzing Distressed Real Estate; April 2010 Sponsored By The Appraisal Institute, Online
USPAP Update 2010; Sponsored by the American Society of Farm Managers & Rural Appraisers, Ruidoso NM.
Attacking and Defending an Appraisal in Litigation: sponsored by the Appraisal Institute. El Paso TX.
WHAT IS AN APPRAISAL?
The single, largest investment most people will ever make is to purchase a home. Whether it's a primary residence, a second vacation home or an investment. The usual parties involved come easily to mind - the Realtor, mortgage company and the title company.
So who makes sure the value of the property is in line with the amount being paid? There are too many people exposed in the real estate process to let such a transaction proceed without ensuring that the value of the property is commensurate with the amount being paid.
This is where the appraisal comes in. An appraisal is an unbiased estimate of what a buyer might expect to pay - or a seller receive - for a parcel of real estate, where both buyer and seller are informed parties. To be an informed party, most people turn to a licensed, certified, professional appraiser to provide them with the most accurate estimate of the true value of their property.
The first step to an appraisal is the inspection, which is done to ascertain the true status of that property. The appraiser must actually see features, such as the number of bedrooms, bathrooms, the location, and so on, to ensure that they really exist and are in the condition a reasonable buyer would expect them to be. The inspection often includes a sketch of the property, ensuring the proper square footage and conveying the layout of the property. Most importantly, the appraiser looks for any obvious features - or defects - that would affect the value of the house.
After the inspection, an appraiser uses two or three approaches to determining the value of real property: a cost approach, a sales comparison and, in the case of a rental property, an income approach.
The cost approach is the simplest to understand. The appraiser uses information on local building costs, labor rates and other factors to determine how much it would cost to construct a property similar to the one being appraised. This value often sets the upper limit on what a property would sell for. Why would you pay more for an existing property if you could spend less and build a brand new home instead? Mitigating factors, such as location and amenities, are usually not reflected in the cost approach.
Mitigating factors, such as the location and amentities, rely on the sales comparison approach to value these types of items. Appraisers get to know the neighborhoods in which they work. They understand the value of certain features to the residents of that area. They know the traffic patterns, the school zones, the busy throughways; and they use this information to determine which attributes of a property will make a difference in the value. Then, the appraiser researches recent sales in the vicinity and finds properties which are ''comparable'' to the subject being appraised. The sales prices of these properties are used as a basis to begin the sales comparison approach.
Using knowledge of the value of certain items such as square footage, extra bathrooms, hardwood floors, fireplaces or view lots (just to name a few), the appraiser adjusts the comparable properties to more accurately portray the subject property. For example, if the comparable property has a fireplace and the subject does not, the appraiser may deduct the value of a fireplace from the sales price of the comparable home. If the subject property has an extra half-bathroom and the comparable does not, the appraiser might add a certain amount to the comparable property.
In the case of income producing properties - rental houses for example - the appraiser may use a third approach to valuing the property. In this case, the amount of income the property produces is used to arrive at the current value of those revenues over the foreseeable future.
By combining information from all approaches, the appraiser is then ready to stipulate an estimated market value for the subject property. It is important to note that while this amount is probably the best indication of what a property is worth, it may not be the final sales price. There are always mitigating factors such as seller motivation, urgency or ''bidding wars'' that may adjust the final price up or down. But the appraised value is often used as a guideline for lenders who don't want to loan a buyer more money that the property is actually worth. The bottom line is: an appraiser will help you get the most accurate property value, so you can make the most informed real estate decisions.
MEET THE STAFF
HARVEY LEE MORRIS III, MNAA
Certified General Appraiser
phone: 575 636 2003
cell: 575 640 7060
phone: 575 636 2003
cell: 575 640 7060
phone: 575 636 2003
cell: 575 640 7060
MORRIS APPRAISAL SERVICES, INC.
LEE MORRIS, MNAA
PO BOX 1119
LAS CRUCES, NM 88004
PHONE: 575 640 7060