What to Know About Commercial Real Estate Appraisal
In the current world we are in, there are many issues to do with commercial real estate that small business owners must digest. This doubles when it comes to understanding the process of commercial real estate appraisal that differs a little from the residential properties appraisals. Below is a list of things you need to know about commercial real estate appraisals.
Expect more than Inspection in the Appraisal Process
Depending on the complexity and size of the property to be appraised, it might take a few minutes to several hours to inspect the property. Some clients think that this is the whole process and fail to understand that it is just the beginning. The property appraisers research on public ownership and zoning records, research lifestyle and demographic data and comparable file sales, replacement costs, and rentals. Next, they analyze this information as it relates to the value of the property. The the final step here is writing a report on their findings.
Avoid Misrepresenting Facts
Appraisers are professional skeptics who will strive to prove any statements you make from other sources. They will ask you questions that they already know the answer just to test your credibility level. Appraisers are always thinking of ways to which they will depend their opinion if they are ever summoned to a court even in assignments that don't show any likelihood of litigation. If you misrepresent anything, the appraiser will discount the credibility of anything else that you say. Check us out here!
Present any Information as Required
Most likely, you will be requested if you can submit a set of drawings for the property, property tax bill, income statements, and other things. You might not have an idea why the appraiser is asking for something, but it is wise to provide whatever you can. Appraisers require certain information to fully complete their assignment hence the more you can provide the faster they can complete the assignment.
The Client is the Party that Asks for Appraisal
If the appraisal is for the purpose of financing the client is the lender. It is the responsibility of the appraiser to ensure that all client information is maintained confidential and not release it to any other party. If you have placed an order for property tax appeal and are afraid that the appraised value might be more than the assessed property value, you can be sure that they will not submit the results to the property tax board without your confirmation.
Identify the Intended User
Make it clear to the appraiser who you intend to use the report. If you are buying a property; your intended users are the seller, the lender and the property tax appeal board. These people are established in the appraisal report and are the only ones authorized to use the report. Get more info here!