June 14, 2010

An open letter to our friends, current and past clients and area property owners,

As twenty plus year residents of Northwest Florida, my family and I are appalled and heart-broken at the loss of life and potential environmental and economic devastation caused by the recent explosion of the Deepwater Horizon drilling platform and the subsequent oil spill. Like you, we have enjoyed the beauty and bounty of this area for years and have invested in local gulf front condominiums, waterfront residences and commercial/business properties.

While the responsible parties and federal agencies struggle to find a viable solution, we feel somewhat helpless as to how we can personally; 1) keep the oil from reaching our shores; 2) keep the economic engine known as our tourist trade alive; and 3) keep our local real estate market afloat. We do have faith in the Coast Guard and our local boat captains to protect our shores, we do have the Tourist Development Council and local Chambers drafting a new message and hosting free concerts for the tourists to keep them coming to our area, however we need a solution to address and document the potential affects to our local area’s real estate market.

Our response is to offer Broker’s Opinion of Value for local real estate owners that may be adversely affected by this disaster. Given the enormous potential losses caused directly and indirectly, it is our recommendation that a baseline Broker’s Opinion of Value be used to establish a property’s “BEFORE DISASTER MARKET VALUE” as soon as possible. Once the extent of the damage and loss has occurred and is known, then a supplemental Broker’s Opinion of Value would provide a property’s “AFTER DISASTER MARKET VALUE”. Having these two detailed reports completed in a timely manner will be very helpful in the filing of potential damage or loss claims with the responsible parties. We have already completed these reports for our personally owned property and stand ready to assist others in need of this service.

The Broker's Opinion of Value (BOV) is a detailed assessment of a property's fair market value, given the physical and economic characteristics of the subject property, and prevailing trends in the marketplace at the time the analysis is performed. Although not a formal appraisal, our BOV process draws upon recognized industry standards and fifteen years of real estate experience in the local area.

Our BOV will include:

• The identity of the client and any intended users, by name or type;

• The identity of the real estate involved in the opinion of value, including the physical and economic property characteristics relevant to the property;

• The purpose of the opinion of value, including the type and definition of value and its source;

• The effective date of the opinion of value and the intended use of the opinion of value;

• All assumptions, hypothetical conditions, and limiting conditions that affected the analysis, opinions, and conclusions;

• The information analyzed, the procedures followed, and the reasoning that supports the analysis, opinions, and conclusions;

• The use of the real estate existing as of the date of value and the use of the real estate reflected in the opinion of value; and,

• The qualifications of the real estate broker relating to the preparation of the opinion of value and sources of information.

While you may certainly order an appraisal to achieve a similar result, the typical fee for a residential appraisal can run up to $500 and fees for commercial appraisals usually run from $2,500 to $3,500 or more depending on the type of property. Although an appraisal does indicate a market value for the subject property, it only takes in to account closed transactions within a certain timeframe to arrive at a value. Our BOVs not only look at closed sales, but also active competitive properties to gauge were the market is heading and suggest a 90-day and 180-day potential sales price. This additional data can help establish a higher valuation if the market is actually trending upward when the BOV was completed. (For all “BEFORE” BOVs, the “value as of date” will be April 30, 2010.)

The fee for the “BEFORE” BOV is $245 for a single family residential residence or condominium unit. However, the “AFTER” BOV will be discounted to $145 as we will have a file opened and the subject property’s data already entered in to our database.

For commercial properties, including restaurants, retail stores and apartment complexes of more than 5 units, the “BEFORE” BOV fee is $495 with an “AFTER” BOV fee of $295. Due to the size and nature of hotel/motel properties, please contact us, as these properties will be quoted on a case by case basis.

Please understand that we will stand behind the valuations concluded in these reports and will be available to defend the same as an expert witness in civil court proceedings if necessary.

As we work our way through this crisis, we intend to do our small part to protect our local real estate market and assist affected property owners to be made “whole” again. Even if you choose not to utilize our firm for your property’s value documentation needs, please seek a licensed, qualified and competent Broker to protect your legal rights.

Respectfully,

Gordon C. MacLean, CCIM

Managing Broker | NWF Realty, Inc.

To place your residential or commercial BOV order, you must fill out the BOV Property Form at the bottom of the page, then return to pay securely through the "BUY NOW" button below or send check/money order to:

        NWF Realty, Inc. ,913 N. Beal Parkway, #A104, Fort Walton Beach, FL 32547

                                CLICK HERE TO SEE A SAMPLE RESIDENTIAL BOV

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