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Description
When it comes to data, appraisers hearken back to the era of hunters and gatherers. From comparables to trends, appraisers are always in need of the latest data. However, a few have taken data gathering one step further and evolved into data purveyors. Three such appraisers who have taken this route are Peter Korpacz, MAI; Kenneth Riggs, MAI; and Stephen Rushmore, MAI.
KORPACZ REAL ESTATE INVESTOR SURVEY
Born of Necessity
The Korpacz Real Estate Investor Survey was started 20 years ago by Peter Korpacz as an inventive way to address the industry's lack of comps. At that time he headed up his own company, Peter F. Korpacz & Associates in New York City. As he recounts, the survey was in no way, shape or form a calculated entity. It just sort of happened.
"In the early 1980s, we had had a recession or two and the transaction market in the New York area got slow," Korpacz explains. "As an appraiser, if you don't have comparable sales, you don't have anything." He talked to some investor clients to see what they thought the cap rates were and turned that into a survey. They put those responses into a table and used it in-house.
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"We put them in the back of our reports" as supporting material, Korpacz says. When the market came back, they had enough supporting material so they put the survey to rest.
However, a few years later, the market dipped again, so they went back to the same well: investor clients and cap rates. This combination of "actual sales and picking the brains of investors on what they saw as the current trends, what they saw happening, what all of their thinking was," Korpacz says, was the genesis of the survey.
His company began sharing this information with people in the industry, which led to a bunch of people saying, "Put me on your mailing list." So, Korpacz started sending the data to 25 to 50 professionals.
Soon he decided to formalize the information into a newsletter, providing some narrative along with each survey. It ended up being four or five pages long. Desktop publishing was just becoming popular, and the first couple of issues were "the ugliest newsletter you ever did... |
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