Commercial Real Estate Appraisal
In the current world, small business owners have a lot to understand when it comes to commercial property. This doubles when it comes to understanding the process of commercial real estate appraisal that differs a little from the residential properties appraisals. Here are some things that every small business owner must know concerning commercial real estate appraisals.
Inspection is not Everything in the Appraisal Process
Depending on the size and the complexity of the property being appraised, it can take less than an hour to several hours to fully inspect the property. Some clients take this to be the whole process, but it is just the beginning. The appraisers study the public ownership and zoning records, demographic and lifestyle information, and gather comparable sales, replacement costs, and rentals. Next, they analyze this information as it relates to the value of the property. To summarize their inspections; they write a report on their conclusions.
A Simple Plan: Appraisals
Don’t Misrepresent Facts
Appraisers are professional skeptics, and they will seek to verify anything you say from other sources. An the appraiser can ask you a question they already have an answer to just to prove your credibility. They are always thinking of ways to defend their opinion if they are ever brought before a court even in cases that don’t show any likelihood of litigation. If you misrepresent anything, the appraiser will discount the credibility of anything else that you say.
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Don’t Keep some Information
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 know why the appraiser is asking for something but it is best that you provide whatever you can. Appraisers have no interest in unduly expanding their work files but certain information may be relevant to their work so the more you can give the more quicker, they can complete their assignment.
The Client is the Party that Asks for Appraisal
If the appraisal is for financing, the lender is the client. The appraisers have the obligation to maintain client confidentiality and cannot release the appraisal report or any other confidential information to another party. If you ask for an appraisal for property tax appeal and you are afraid that the appraised value might end up being higher than the assessed value you can rest assured that the appraiser will not release the results to property tax board without your permission.
Intended User of Appraisal Reports
Ensure that the appraiser knows who you want to use the report. If you want to buy a property that might mean you intend to share the appraisal with the seller, the lender, and possibly your local property tax appeal board. These parties will be identified in the appraisal report, and they are the only ones allowed to use the report.