Partial interest valuation

Many times property ownership isn’t clear cut. John Doe may own a piece of property solely in his name that is free of all liens, mortgages, easements or leases or he could also own it with his wife as a “joint tenant.” It’s also possible that the couple may lease the property to a third party. They could have signed an agreement to give up any subsurface or mineral rights in exchange for money. It’s also possible that there could be various restrictions on the property limiting the height or use. The “bundle of rights” for a parcel of property could be distributed in a number of ways.

A partial interest is anything short of full ownership otherwise known as fee simple. Homeland has plenty of experience with such appraisals. Our appraisers are qualified and have the expertise necessary to provide accurate appraisals based on partial interest.

A partial interest appraisal may be necessary for…


It is common and customary for the valuation of a party’s stake in a property. Sometimes it isn’t as easy as just valuating the property and then dividing by the number of invested parties. This is because a lower share can be sold at a discount due to lack of control. This is how a 51% corporate stake is valued at a much higher % than the remaining 49%. The knowledge and judge of a real estate appraiser is necessary.

As an investor it may be necessary to valuate the value of rents or a lease on a property without valuating the entire property. An appraiser can examine the comparable market rentals and issue his opinion of market rent for the unit in question. If the property is rented below market rent, then the tenant can sublet it at a profit. On the other hand, if it is rented above market rent it is more than likely that the tenant will move out once the lease is up. When analyzing market rents, the most important factors are proximity, room count, sq footage and condition. Only an experienced and qualified appraiser with the appropriate resources at his disposable is qualified to give an opinion on this.


In some cases you may need to know the value of an existing or proposed easement. The right to use property without actually owning it is called an easement. A common scenario would be when a neighbor needs to use part of your driveway in order to bring his car in and out as opposed to having to park around the corner.


The value of a timeshare is a common partial interest.