Commercial real estate appraisals are complicated, requiring an expert who can evaluate a property's value as an investment in terms of revenue potential and expenses. In many respects, conducting a thorough and accurate commercial appraisal is a more exhaustive process than appraising a house. Whether you're appealing a property tax assessment, purchasing a building, or selling a property, there are several elements to know before you arrange a commercial real estate appraisal.
5 Commercial Real Estate Appraisal Facts
1. The Inspection Is Only One Component
Many clients assume the real estate inspection is the bulk of the appraisal process and expect results shortly after it’s complete. However, commercial real estate appraisers must investigate local zoning regulations, look at comparable sales in the area, and study past income generated by the property in addition to other research, which could take weeks to complete.
2. Honesty With Appraisers Is Essential
An appraiser's report must be legally defensible, so they are unlikely to take you at your word if you're showing the property. It's best to assume the appraiser will verify everything you say, so answer questions as honestly as possible.
3. Appraisers Have a Code of Ethics
Every real estate appraiser must adhere to the Uniform Standards of Professional Appraisal Practice, a code of ethics enforced by state licensing agencies. They are legally obligated to provide an unbiased opinion, regardless of the wishes of their client.
4. Results Are Confidential
The individual or organization who orders the appraisal is the client, and only they will receive the results. The appraiser will not release the outcome of the study to another party, including local government agencies, without the client’s consent.
5. There Are Several Types of Appraisals
Commercial real estate appraisers offer a variety of reports, some of which are for personal use. When ordering an evaluation, discuss your intended use of the report with the real estate appraisal service you hire to ensure you will get the information you need.
Metro Appraisal Associates is a leading real estate appraisal service in Rochester, NY, with over 40 years of experience evaluating properties throughout Monroe County and the surrounding areas. Visit their website to see a comprehensive list of properties they study and call (585) 225-3042 to request a quote on your evaluation. Check their Google+ page for tips from their appraisers.