Monday, December 23, 2019

3 Things to Know About Commercial Real Estate Appraisal

If you want to get a commercial real estate appraisal done, as you want to establish a lease value, here are three things that you should now.

  • The inspection is just the part of the appraisal process
It totally depends on the size and complexity of the property to inspect it and the whole process might take less than an hour to several hours. Many clients think it as the only process; however, it is just the beginning. Appraisers research zoning records and public ownership investigate lifestyle and demographic information, then compile comparable sales, rentals and replacement costs. After this, they analyze this information which is related to the property. At last, they write a report on their findings.

  • Never misrepresent the facts
Appraisers will verify everything that you tell them from other sources. They are professional skeptics. They may even ask the questions that they already know the answer just to test the credibility of the person showing them the property. They are always thinking about how they are going to defend their opinions if ever brought to court. Therefore, make sure to never misrepresent anything otherwise the appraiser will discount the credibility of anything else that you say.

  • The Client Is the Party That Orders the Appraisal
The lender is the client when the appraisal is for financing. Appraisers are committed to maintaining the confidentiality of their clients, so if you are the borrower or any other party, the appraiser will never release the appraisal report or any other confidential information to you. If you are afraid that the appraised value might be higher than the assessed value when you order an appraisal as part of a property tax appeal, you can be sure because the appraiser won’t release the results to the property’s tax board without your permission.

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