Author: genr8admin

A common question when it comes to valuing a real estate asset is what type of value do I need? It is a common misconception that a certified appraisal and a broker price opinion, also known as a market analysis, are the same thing. These terms are sometimes used interchangeably, and while they do have a lot of similarities, they are both very different. 

Broker Price Opinion (aka Market Analysis)

Preparer: Real Estate Broker

Common Uses: Estimate value on a real estate asset for the purpose of a real estate sale or setting a listing price on a property.

Characteristics: Some characteristics of a Broker Price Opinion is that a range of value is concluded, normally only a simplified sales comparison approach is used, and the report is normally only a few pages. 

Pros: There are many pros to this form of opinion of value. Normally a market analysis is cheaper than a certified appraisal because of the extent of research involved in the market analysis. Another pro is that it is very simple to understand and normally the report is only a few pages long. There are also more qualified brokers to complete a broker price opinion unlike a certified appraisal that requires a board-certified appraiser. 

Cons: One of the biggest cons to the broker price opinion or market analysis is that the depth of forming an opinion of value uses less analysis than a certified appraisal. A simplified sales comparison approach is used to form an opinion of value unlike a certified appraisal that uses three different approaches to value. Normally this simplified method is enough to get an accurate opinion of value for establishing a sale or listing price for a sale of real estate assets. Another con is that a market analysis is not certified and is normally not suitable for more advanced jobs such as establishing collateral for banks or values for government entities. 

Certified Appraisal

Preparer: State Board Certified Appraiser

Common Uses: Estimate value for collateral, litigation purposes, government entities, and IRS uses. 

Characteristics: Three approaches to value are used: Cost Approach, Sales Comparison Approach, and Income Approach. Other characteristics would include very in depth analysis of the asset and comparables being used and appraised.  

Pros: Like a broker price opinion, there are many pros for certified appraisals. One pro is that a certified appraisal is completed by a board certified appraiser and their findings hold weight with banks, government entities, and in a court of law. Because appraisals use three approaches to value, a value is estimated with cost approach breaking down certain components of improvements and land uses, sales comparison approach comparing the subject property to comparables and adjusting up and down for similarities, and finally the income approach were a value is estimated using the income of the asset. 

Cons: Certified appraisals are normally more expensive than broker price opinions. The timeline to have a certified appraisal completed can normally be longer due to the demand and pool of appraisers qualified to complete the project. 

In conclusion, you can see that both broker price opinions and certified appraisals have their place in the real estate world. It is always a good idea to speak with the professionals and decide what route is best for you and your situation. 

NextAg Appraisal & Realty is both a licensed real estate brokerage and certified appraiser. We would be more than happy to consult with you and see what product best fits your situation. 

An online real estate auction is a great tool to utilize in the growing world of technology that we live in today. As we all know, mostly everyone today has a cell phone in their hand 24/7 and we have access to unlimited information and applications. Online auctions allow us to market and sell your property to buyers anywhere in the world in the palm of their hands. 

Consumers have been buying things online for a while now. Websites like eBay and Amazon allow us to buy things with a click of a button. Why can’t we do that with real estate properties? Well, we can! Here at NextAg Appraisal & Realty we provide the services of selling your real estate property online where buyers can purchase the property with a click of mouse or a button on their cell phone. 

What are the advantages of an Online Real Estate Auction? 

There are some great advantages to using our Online Auction platform. For example, buyers can remain completely anonymous taking out any potential biases that an in-person auction might create. Another reason, like we talked about earlier, is that people can buy your property anywhere in the world if they have internet access. There is no longer the hinderance of remembering the auction location & time, or sitting for hours waiting for the sale of the property.

I know you’re probably thinking: But I still have to know when the auction starts and wait until the conclusion of the auction. This is not exactly the case! With our mobile app and internet platform, you can sign up for email and cell phone notifications. This will then alert you of when the auction starts, when outbids happen, and the conclusion of the auction. 

But I still have to sit on my computer or phone and bid each time, so I know I’ve bought the property, correct? Also, not the case! The online bidding platform allows you to enter a maximum bid, so you don’t have to sit through the whole auction process. The platform will bid on your behalf up to your maximum bid until another party has surpassed you. A notification will then come in when you have been outbid. In turn, you will just log on to our website or your phone and bid again or set another max bid. 

Conclusion

Overall, this is a great tool when selling your property because it allows you to have a larger pool of bidders, anonymity for those bidders, and an efficient and professional platform to get the most for your property. 

If you are thinking about possibly selling your property, feel free to reach out to me and I can provide a no-obligation consultation of the online auction process and quick market analysis of your property. 

It is hard to believe but we have reached about halfway through the growing season for our crops here in the Midwest. The corn is starting to tassle, and the soybeans are starting to fill out. Wheat harvest is in full swing, and everyone is hoping for rain but with those Midwest thunderstorms comes the all too well-known wind and hail. With all the nice weather and summer activities going on the last thing on people’s minds is harvest, end of the year decisions, and definitely not next year’s crop. 

But time moves fast and there are decisions that we need to be making now as landowners that will affect next year’s outcome. 

For example, if you are on an ORAL lease and thinking about making a tenant change or are thinking about selling your property this fall or next spring, you are required to give notice to your tenant in writing by September 1^st of this year. In Nebraska the oral lease period runs from March 1^st to February 28^th of the next year. Per Nebraska statute, you must give 6 months notice to your farm tenant to terminate a lease (September 1^st) otherwise the tenant has the right to farm the next cropping season.

Even if there is a possibility that you want to sell your property or make a change in tenant on an oral lease it is a safe practice to give notice in writing. This does not mean that your tenant can’t farm your property next year. It may be a good point to switch to a written lease at that point if you don’t decide to change tenants or sell. 

On the other hand, if you are on a written lease, please review it and make sure that it is up to date and has a definite start and end date. If you were previously on a written lease, for example, in 2022 but forgot to rewrite and sign a new lease in 2023. You are now on a carryover oral lease and fall into the situation above.

Here at NextAg we will only rent land via a written lease, and we review that lease with our landowner clients and tenants each year. We meet in person with the tenant to sign the lease each year to gather their thoughts and perspective as stewards of the land to pass on to the absentee landowner. 

If you need a consultation of your lease, management of your land, or are looking to sell this fall or spring don’t hesitate to give us a call or send us an email and we will be more than happy to help. 

Land is what we do!

Ethan Sorensen

Owner