Our appraisal management company has more than fifteen years of experience providing fast and accurate residential and commercial appraisals. We understand that the commercial appraisal process can be complicated. Afterall, depending on the property, the process can be very different from a residential property. Much of the value of a commercial building is based on how it will be used, such as rental rates in the area and the number of tenants the building can house.
In today’s post we’ll be sharing a few things to know about the commercial appraisal process. Continue reading to learn more and contact Valuation One Inc. AMC for all of your valuation needs.
Be Honest
Part of our job as appraisers is to verify anything that the current owner tells us about the property. It’s important to be honest and transparent about the information you provide and how you answer the questions the appraiser asks during the valuation process. If you misrepresent anything, the appraiser will know that you aren’t credible and will take anything else you say with a grain of salt.
Don’t Withhold Information
Not withholding information is in the same vein as being honest with the appraiser. During a commercial appraisal, you’ll most likely be asked to provide property taxes, drawings of the property, income statements, and other documents. The more quickly you provide these documents, the more quickly the appraisal management company can finish their job.
Inspection Is Just The Beginning
Many of our appraisal management clients believe that the inspection is the entire valuation process. While inspecting the property is a very important part of the process, appraisers also research public ownership and zoning records, take demographic information into account, and analyze comparable sales in the area.
Three Types Of Pre-Reports
There are three types of pre-reports. A “restricted use report” is the shortest and least expensive — fees vary based on the type of property and the scope of appraisal services — but can only be used by a client. The second type of pre-report is the “summary report,” which summarizes the data and analysis found by the appraiser and can be used by any intended user. Lastely, a “self-contained report” contains all of the details of the data analysis found during the valuation, but this type of report is rarely requested. When seeking the services of an appraisal management company, share with the appraiser how you intend to use the report and they’ll help you determine which type of report you will need.
Consider The Property Interest
It’s important to let the appraiser know why you’ve enlisted their commercial appraisal services. For example, if you want to know what a property is worth free and clear, you’re interested in what’s called the “fee simple interest.” On the other hand, if you want to know what the property would be worth to a landlord when it is occupied by tenants, you’re looking for a “leased fee interest.” Lastly, if you’d like to know what the lease is worth to a tenant, you want a “leasehold interest.” Be sure you know which property interest you want appraised when you enlist the help of the appraisal management company.
Valuation One Inc. AMC Appraisal Management Company
Our AMC was founded in 2002, and we have been providing mortgage companies, accountants, and lawyers with accurate, unbiased appraisals ever since. We are licensed to appraise properties in Texas, New York, Georgia, Nevada, Washington, and Massachusetts. Learn more about our commercial appraisal services and let us find you a quick and accurate valuation solution. Contact us today to get the appraisal process started.