First, obtaining a qualified commercial property appraiser is one way to ensure that an accurate valuation is achieved. Whether you are buying or selling, it’s necessary to work with the right commercial appraisers every time. Here are some selection tips for the right appraiser.
- Consider Credentials
Verify that the credentials acquired by the commercial appraisers meet your requirements. These all require education and years of experience. Confirm that the appraiser is licensed and has a degree from one of the top institutions. Depending on the credentials, you can make an educated choice.
- Verify Commercial Experience
Find appraisers who are highly experienced in appraising your specific property type — be it office, retail, industrial, multi-family, etc. They should have commercial market knowledge about that specific submarket. Get some portfolio samples to measure experience.
- Local Market Expertise
Local knowledge of the appraiser – the zoning laws, market trends, competitive properties, and an area’s restrictions will, of course, be beneficially reflected in the appraisal. A national firm might appoint an appraiser who has no local experience in commercial appraisals. You want to find someone who is steeped in your specific market. Search the internet for “commercial real estate appraisal near me”.
- Good References
Get references from other clients, and also check online reviews. A reputable and satisfied client means the appraiser produces quality work and provides professional service. Confirm that the appraiser’s record is clean and that no negative remarks or complaints are filed against them.
- Effective Communication
The appraiser should clearly explain the process, timelines, and costs beforehand. Good practice in initial discussions is to find responsiveness. Quality appraisers will set proper expectations and be available throughout the process.
- Ask About Methodology
Explain why their valuation methodology is appropriate and articulate their approach. Ensure they tailor their approach specific to the property type and assignment. Be wary of an appraiser that uses a “one-size-fits-all” approach.
- Verify for Errors
Review sample commercial appraisals reports of potential hires to find clear errors or unsupported assumptions in the appraisal or inconsistencies in the methodology applied. It says much about their expertise and attention to detail.
- Look for Objectivity
Choose an independent fee appraiser rather than one your lender or others involved in the transaction might recommend. Fee appraisers have nothing to gain by meeting required values and delivering objective opinions.
- Provide the Scope of Work
Be specific about the purpose: acquisition, loan, tax, etc. Provide the appraiser with all relevant information you can provide, such as blueprints, rent roll comps, etc. Clearly indicate any specific approaches you wish to have used in valuing the property.
- Discuss Fees Upfront
Appraisal fees may differ significantly depending on the type of property you’re dealing with, the approaches used, and the experience of your chosen appraiser. It is wise to get ahead with fee estimates so that there’ll be no surprise to paying too much. Be wary of fees that could be too low for the size and work description.
Concluding Remarks
Extensive research would reveal qualified and reputable commercial appraisers suitable for your particular commercial property. Time spent ensuring the right hire results in you getting the accurate valuations that you can confidently rely on. Visit the link given to know more about commercial appraisers- National Appraisals.ca.
