Appraising historic or landmark properties presents unique challenges and requires specialized skills and knowledge. They have characteristics and qualities which make them unique and different. The value of such properties is affected by many factors, some of which may not apply to other properties. In this blog, we will discuss challenges and best practices for appraising historical or landmark properties.
Challenges
The value of a historic property or landmark can be affected by its architectural, cultural, or historical significance. To accurately appraise such properties, it is often necessary to have specialized expertise and knowledge. The following are some of the challenges appraisers face when appraising historical or landmark properties:
- Historic or landmark property often has unique architectural features such as ornate woodenwork or intricate tiles that require specialized expertise to properly evaluate. For these properties, appraisers might need to consult historians or architects to get an accurate value.
- Lack of comparable Sales: Appraising an historic or landmark property can be difficult because there may not be many comparable sales in that area. To determine the value, appraisers may have to consult historical data such as previous sales.
- Preservation Restrictions – Some historic and landmark properties are subject to preservation regulations, which may limit their potential for use or development. When determining the value of a property, appraisers may have to take into account these restrictions.
Best Practices
To properly appraise a historic or iconic property, its unique features and qualities must be carefully considered. For an accurate appraisal, appraisers must follow these best practice guidelines:
- Specialized Training Appraisers who specialize on historic or landmark properties need to have special training and education. It can be courses in architectural history, historic preservation or cultural resource management.
- Research and Analysis – Appraisers are required to conduct thorough research on the property’s historical significance and perform a thorough appraisal. This includes reviewing historical records, consulting local historians or conservation organizations, and examining architectural features and design.
- Understand the Market. Appraisers need to have a good understanding of how the local real estate markets work and the value of historic or landmark property. Appraisers should have a good understanding of recent sales in the area, and the impact that market conditions can have on the property value.
- Consult experts: Appraisers need to be open to consulting with experts like architects, historians or preservationists in order to accurately appraise historic or landmark property. These experts provide valuable insight on the property’s historical significance and unique characteristics.
Summary
It takes specialized expertise and knowledge to appraise historic or landmark properties. Appraisers must be aware of the challenges and best practice for appraising these properties in order to provide an accurate appraisal. Following these best practices and consulting experts, appraisers are able to provide a valuation that accurately reflects value.