The International Association of Assessing Officers (IAAO), in this month's professional journal Fair & Equitable , has published an article by John Lifflander, ASA.
John has been appraising for more than 25 years, and is president of Covenant Consultants, Inc., an appraisal and property tax consulting firm which specializes in the valuation of semiconductor plants, paper mills, food processing plants, and other large industrial facilities.
John Lifflander's article, The Rise and Fall of Real Estate Values: Who Controls the Ride? begins:
"Assessors are facing the challenge of assessing property in a roller-coaster of a real estate market. In the past several years values have increased quickly, but now they are descending in most areas, making valuations more difficult and increasing assessors' workloads. To understand how to deal with this problem, it is helpful to understand how it occurred."
John's analysis offers perspective on how the Feds, Lenders, Investors, Buyers & Sellers and Appraisers have ALL been players in the real estate meltdown.
The article discusses:
- The Federal Reserve's impact on availability of money and the loosening of lending requirements
- The Mortgage Lender's creation of exotic loan types and Loan Broker's that rarely have a stake in what happens to the loan after its made
- Appraisers that are pressured to inflate values to retain their livelihood
- Buyers and Sellers that hide "concessions" that inflate the reported sales price
- Investors and Speculators that want to ride the wave of sky-high prices.
AUTHOR: John Lifflander, ASA, has been appraisingfor more than 25 years, and is president of Covenant Consultants, Inc., an appraisal and property tax consulting firm which specializes in the valuation of semiconductor plants, paper mills, food processing plants, and other large industrial facilities. In prior years, he was a senior industrial appraiser for the Oregon Department of Revenue, and an administrative law judge for the Oregon Construction Contractors Board and for the Oregon Department of Revenue, where he adjudicated property tax appeals. Mr. Lifflander has been published numerous times, teaches courses on industrial valuation, and is an experienced consultant and expert witness for complex valuation litigation. He is the author of the recent IAAO book, Fundamentals of Industrial Valuation.
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