The year is coming to an end and Christmas is only days away. We are reflecting on this incredible year and the many ways we are thankful. One of the biggest things we are thankful for is you, our clients and friends of the firm! Thank you for trusting in our firm, and for allowing us to be part of your decision making.
In honor of our valued friends and clients, for the past 26 years we have provided gifts for less fortunate children through the Daniel Jacobs Christmas Families Program. This year we adopted ten children ranging in age from one to 16. Each will receive gifts from their "wish lists" as well as surprises and other needed items. As we conclude our shopping for our "Red Bag" kids we have you to thank for helping to make this happen. This year we were also fortunate to be able to support the work of the Valley Hope Association, Raytown Emergency Assistance Program, Operation Breakthrough, Harvesters Community Food Network, Leukemia and Lymphoma Society, Cornerstones of Care, Johnson County Interfaith Hospitality Network, Susan G. Komen Breast Cancer Foundation, Blue Valley Educational Foundation, Overland Park Chamber Foundation, ALS Association Mid-America Chapter, and the Helzberg Entrepreneurial Mentoring Program! We have enjoyed a very good year in 2017. We hope you appreciate this expression of our gratitude for your business. Have a wonderful holiday season and a healthy and prosperous New Year! Sincerely, Laird Goldsborough, MAI; Bernie Shaner, MAI, SRA; Jason Roos, MAI; Daniel Kann, MAI; Andrew Baker, MAI; Brock Heyde, MAI; Derek Shaner; Chris Hoffman; Tom Horton; Jessica Perryman; Shari Schweitzer; Joanne Montgomery; Ryan Myers; Tyler Siegworth; Garrett Connolly; Audrey Teixeira; Spencer Morse; Maddy Johnson; Drew Murray; and Jacob Davis. Valbridge Property Advisors Kansas City has four Eagle Scouts. Recently, Baylor University published a nationwide study showing that those who attain this ranking display enhanced "ethics, decision making, relationships and personal development." Leadership: Statistically, Eagle Scouts are 39% more likely to hold positions of leadership within their offices. Valbridge Kansas City Director Jason Roos, MAI is an Eagle Scout. He is also an MAI-designated appraiser and a past President of the Kansas City chapter of the Appraisal Institute. Planning and Preparedness: We all know the importance of disaster preparedness. Scouts are taught from an early age to always be prepared and this definitely translates into the professional world. As appraisers who often go on site visits and inspections, we place a huge emphasis on being prepared for anything when in the field. We even wrote a post about what we bring with us when we go! Helpful: According to the study, Eagle Scouts are 54% more likely to agree that they always try to exceed expectations. Of course, we know this to be true. Our Eagle Scouts (actually, all VPA employees) go the extra mile. Detailed sales confirmations and utilizing top-notch resources are examples of this in action. Trustworthy: One of the pillars of the Boy Scout Law, we incorporate trustworthiness into all of our relations with our clients. You don't have to be an Eagle Scout to know that this is incredibly important in the appraisal industry. In fact, our appraisers are required to abide by the Uniform Standards of Professional Appraisal Practice (USPAP). What are your favorite Eagle Scout traits? Let us know in the comments below!
One of the primary pillars of all good appraisals are strong sale comparables. This is why we exercise thoroughness in attempting to confirm all the sale comparables (comps) we use in our analyses. It is easy to use only the online information available (such as from CoStar or Xceligent) or the data recorded on the county’s Sales Validation Questionnaire, but our firm makes a point of speaking directly with those involved in transactions to obtain the story behind the sale. This is integral to the report because the information available online is not always accurate. Speaking with a person involved in a sale (a broker, buyer, or seller) allows us to not only confirm details, but to learn the context of the transaction and the property history. These factors help determine a final value. What many may not know is there are occasional instances of online information and county questionnaires being inaccurate. In fact, we have run into this when confirming sales. In one example, our appraiser found that the questionnaire obtained from the county inaccurately reported the sales price by nearly $20,000. With large amounts of money in the balance, we need to be as accurate as possible. When choosing a valuation firm make sure to utilize one that properly completes the sales confirmation process. Valbridge Property Advisors' dedication to accurate valuation means that we go the extra mile when it comes to the details, such as proper sale confirmations, necessary to ensure an accurate valuation.
According to the Appraisal Institute: "an evaluation is defined in the Guidelines as 'A valuation permitted by the Agencies’ appraisal regulations for transactions that qualify for the appraisal threshold exemption, business loan exemption, or subsequent transaction exemption.'" In other words, an Evaluation is a more limited valuation, takes less time to complete, and is cheaper to produce. Below we tell you all you need to know about evaluations and why you should come to us when you need one! When to do an Evaluation: A transaction with a value of $250,000 or less, or a business loan of $1 million or less does not require an appraisal, but does require an evaluation.
The Requirements for an Evaluation: According to the Appraisal Institute, an evaluation must do all of the following: • Be consistent with safe and sound banking practices • Support the institution’s decision to engage in the transaction • Provide a reliable estimate of the collateral’s market value as of a stated effective date prior to the decision to enter into the transaction • Be based on a valuation method that is appropriate for a transaction rather than the method that renders the highest value, lowest cost, or fastest turnaround time • Address the property’s actual physical condition and characteristics • Address the economic and market conditions that effect the estimate of the collateral’s market value, and • Not be based on unsupported assumptions, such as an assumption that the property is in average condition, the zoning will change, or the property is not affected by adverse market conditions. Who Can Write an Evaluation: According to the guidelines, whoever performs an evaluation should be independent of the loan production. Many banks spend time evaluating their collateral themselves. When trying to close a loan, we know time is of the essence. This is where we can help. We are one of 68 offices in the Valbridge Property Advisors network and we have an incredible team backed by nearly 40 years in the Kansas City market. When you get an evaluation written by us, you are getting timely, accurate information that is signed by one of our six MAI-designated appraisers. Now that you're familiar with this type of report, how can we help you evaluate your collateral? When it comes to our work, our clients know that they are getting the best and most educated valuation advice that they can. In other words, you are getting what you pay for with our services. There are 14 hours of appraisal education required per year, and with 75% of 2017 complete, our appraisers have nearly doubled that! On top of that, 90% of the courses taken were through the Appraisal Institute. So how do we stay up-to-date with our valuation education? Here are our top education sources below: Continuing Education Classes: All of our employees (from newest to oldest) make a point of taking appraisal continuing education classes multiple times a year. 90% of these are through the Appraisal Institute, as mentioned above. As members of the AI | Kansas City chapter, we have access to meetings, Lunch and Learns, classes, seminars, and scholarship opportunities all year long. We definitely take advantage of these benefits and recommend all appraisers join their local chapters! Lunch and Learns: One great way to get information in a short span of time (and add in a balanced meal into your busy schedule) is to host a Lunch and Learn. We do this in our office on a monthly basis and cover everything from editing reports to proper etiquette techniques when at dinner with a client. Webinars: Webinars are an efficient way to connect and get information across when time or distance may be an issue. We use these to help us keep up with the latest trends in our technology. There are many free resources online to find webinars, but most of the ones we attend are hosted by professionals within Valbridge. With more than 200 MAI-designated appraisers nationwide, we have experts on nearly any appraisal topic. Enterprise University: Put on through Enterprise Bank & Trust, Enterprise University offers free classes on thought-provoking material. This is a great opportunity for anyone wanting to further their career. The Kansas City and Overland Park Chambers of Commerce: Being a member of your local chamber is one of the best things you can do to increase your industry knowledge. Not only do the Kansas City and Overland Park chambers host learning events throughout the year, but they help you get in front of experts that know their industry. Going directly to the source is often the best way to learn! So there you have it! From the moment a Valbridge Property Advisors' team member starts, they are entrenched in educational opportunities and molded into the highly knowledgeable appraisers they are today. Most importantly our appraisers have a thirst for knowledge and continuously strive to improve themselves. We identify and analyze the variables that affect value, often seeing what others don’t see based on our expertise. When you hire Valbridge, you're hiring a team that's passionate about education and keenly attuned to the nuances within the appraisal industry!
Valbridge values both existing and proposed car washes throughout Kansas and Missouri! In an effort to end the cycle of little-to-no information when researching for these properties, we've compiled a list of things you need to know when appraising car washes! Specialization: One thing many people need to understand before researching car washes is that they are a specialized property and built for single-use. Often, normal appraising rules don't apply. Capture Rates: Some people have no idea capture rates for proposed car washes even exist! These are the percentage of washes by the property that are captured from the cars passing by daily. Challenges of a Proposed Facility: When researching, appraisers have to keep in mind that there are different challenges when appraising a proposed facility, as opposed to an existing one. On top of that, car washes themselves come with their own set of challenges. Types of Car Washes: Within this property there are many different types; self-serve, full service, hybrid, exterior-only, conveyor, and many more! Operating Expenses: A lesser known fact: operating expenses for a car wash are based on a percentage of total income. Cost Approach: For a car wash, the cost approach excludes the business and intangible value. What have you seen that's unique to car wash valuation? Let us know in the comments below! Valbridge appraiser, Garrett Connolly, was a chief contributor for this blog post. Garrett has been with Valbridge Property Advisors since 2015 and is a graduate of the University of Missouri with a degree in business finance.
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