Partial interest and partnership interest appraisals start with a sound appraisal of the intrinsic value of the underlying fee simple real estate or overall business. But to complete the exercise, the appraiser must then employ special appraisal methodologies and adjustments to ascertain the value of the partial interest in the real estate or of the partial or partnership interest in the business entity.
Federal Appraisal provides both the appraisals of the underlying real property and business enterprise and of the partial interest. Our clients are assured that their reporting will withstand accounting and legal audit and examination, as we have years of experience employing the recognized appropriate and acceptable valuation procedures and reporting methods.
We begin with an analysis of the underlying asset, which is an appraisal within itself. Next we review the relevant partial or partnership interest documents, with accounting and legal counsel when necessary, in order to discern the impact on value of the documents. Lastly, we research, analyze and then apply the adjustments needed to pro rata value for lack of control and lack of marketability. These adjustments are known as the discount for lack of control (DLOC) and the discount for lack of marketability (DLOC).
We appraise limited partner and general partner interests, family limited partnerships (FLPs), fractional estates, deed restrictions, conservation easements and encumbrances.
Since our reports are USPAP compliant and are certified by state certified real estate appraisers with decades of experience in such appraisal issues, we meet the requirements for IRS “qualified appraisers”.