If you have a commercial property, obtaining an appraisal for this is different from residential properties. This is the first thing you need to understand. Appraisals for commercial real estates are more subjective compared to residential in the sense that the value of the property is gauged on the rental rates the property will receive. The process of getting it appraised is a bit complex for novices especially if you are used to residential properties’ appraisal, but knowing a few simple tips would help you gain a few insights with regards to commercial property appraisals.
Inspecting The Property Is Not The Only Step
Commercial lot owners might get the idea that inspecting the property is the same as appraising. The size of the property is also a factor since the bigger the property is, the longer it will take for it to get inspected. Inspection is not the whole appraisal process, it is merely the beginning. There are other considerations for the property that the appraisers need to include in the process. Rentals, maintenance costs, zoning records, public ownership, information regarding lifestyle and demographics, these are some of the information the appraiser needs to have since all these affect the value of the property. Once they have all these data, they could properly appraise the property.
Appraisers Follow Strict Codes
Appraisers are required to be unbiased. They follow a strict code when it comes to appraising properties and failure to give an unbiased opinion might lead to disciplinary actions and revoking of their certifications. If the appraiser for your commercial real estate refuses to do something you have asked, it is most probably in conflict with the code they are strictly required to adhere to. So, if you have any commercial property northern beaches, make sure to employ the services of appraisers who value their code of ethics.
Appraisers Will Ask About Everything
It will not do you any good if you withhold any information from the appraiser. They will verify everything and ask other sources. They will ask you even if they already know the answer. Don’t take this against them. They are just doing their job and are very thorough. The appraisers are also constantly thinking about the probability of being litigated. That is the reason why they are cautious and require all accurate facts presented before them. They might also ask for supporting documents such as blueprints and layout of the property, tax bills, etc. It might seem nonsense but don’t discredit the request. The appraiser will not ask something that would just add to their work files, they are asking for it because it’s necessary. Keep in mind that the more efficient you are in providing for what they require, the more efficient they are in providing you with the property’s appraisal.
Inform The Appraiser Of The Appraisal Report’s Purpose
This is one of the most vital pieces of information you need to share with your appraiser. If you are buying, inform the appraiser that you will share the report with the seller and or the bank (if you are getting a loan) and other authorities that will require the report before you could close the deal regarding the property. This is necessary so the appraiser could include every piece of information the authorized party who will read the report requires.
Lastly, you have to remember that the fee for commercial property appraisal varies. The property might require a special appraisal so make sure to prepare a few hundred bucks extra.