Partial interest valuation

Often, the ownership of a property isn't cut and dried. Rob Smith might own a property outright, by himself, unencumbered by liens or mortgages, leases or easements. But he might also own it as a "joint tenant" with his spouse, Mrs. Smith. The Smiths' may also lease part of the property to other people. They may have even signed away some mineral or water rights. There may be a restriction in the Smiths' deed stating that the property must never contain a structure more than two stories in height. There are a thousand other ways the 100 percent "bundle" of rights to a parcel of property might be distributed.

Anything less than full ownership -- called "fee simple" in deeds and conveyances -- by a single person or entity is a "partial interest." Here at Appraisers Of Las Vegas.com, we appraise partial interests all the time. It's a specialty and discipline that takes unique expertise and training, and you can be assured we're well qualified to deliver an opinion of value on a partial interest.

When might you need a partial interest valuation?

left

In divorce or dissolution of a partnership proceedings, you might need to fairly value one party's interest in real property. Sometimes, particularly in partnership situations, it's not simply a matter of appraising the entire property and dividing by the number of owners. A fractional share of property may sell at a discount to reflect lack of control, costs of and barriers to sale. You need the judgment of a professional appraiser.

You might need the value of rents or leases on a property, but not the underlying value of the real estate. This is more complicated than it sounds, and isn't just a matter of how much a tenant is currently paying. A professional, well trained appraiser will examine rents in the market to determine fair market value of rents or leases. If a tenant is paying below market value, they might be able to sublet at a profit. If they're paying over market value, their likelihood of moving on when the lease term is up increases. There are many things requiring the professional judgment of an appraiser that factor into the calculation.

You might need to know the value of a proposed or existing easement. An easement is a right to use property, without owning it.How much is it worth to your neighbor to build a driveway across part of your property for entry to and exit from his property, rather than an alternate route that may be more costly to build?

You might need an appraisal of your (or your customer's) interest in a timeshare or condominium.

Because there are so many ways the "bundle" of rights to property can be divvied up, when you order an appraisal you might need a partial interest valuation and not even know it. You should be sure the company you hire is qualified to perform partial interest valuations. Here at Appraisers Of Las Vegas.com, we are. Browse our website to learn more about our qualifications, expertise and services offered.

Appraisers of Las Vegas Appraises Houses to High-Rises. Expert residential and commercial appraisals of all types of real estate by Nevada Licensed and Certified Residential and Certified General Commercial Appraisers in Las Vegas, Henderson, North Las Vegas, Boulder City, Clark County and all of Southern Nevada. We also provide appraisals in the Clark County communities of Summerlin, Paradise, Aliante, Seven Hills, Anthem, Green Valley, Southern Highlands, Sun City, Spanish Trails, Spanish Hills, Rhodes Ranch and all of the local condo communities.