Commercial Real Estate Appraisal
In the current world we are in, there are many issues to do with commercial real estate that small business owners must digest. That is doubled for the notion of getting an appraisal for commercial real estate process that differs in a bit from residential properties appraisal. This the article offers you with a list of some things that you should know regarding commercial real estate appraisals.
The Inspection is only a Small Part of the Entire Appraisal Process
Depending on the complexity and size of the property to be appraised, it might take a few minutes to several hours to inspect the property. Some clients think that this is the whole process and fail to understand that it is just the beginning. The appraiser will research public ownership and zoning records, investigate the lifestyle and demographic information, and compile 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.
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Never try to Misrepresent Facts
Appraisers are professional skeptics who will strive to prove any statements you make from other sources. They will ask you questions that they already know the answer just to test your credibility level. Appraisers are always thinking of ways to which they will depend their opinion if they are ever summoned to a court even in assignments that don’t show any likelihood of litigation. If you happen to misrepresent any detail; the appraiser will discount the credibility of anything else that you say.
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Don’t Withhold Information
Probably, you will be asked if you can provide a set of the property drawings, a property tax bill, income statements, and other relevant things. You might not have an idea why the appraiser is asking for something, but it is wise to 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 reason for the appraisal is financing; the client becomes the lender. It is the responsibility of the appraiser to ensure that all client information is maintained confidential and not release it to any other party. If you have placed an order for property tax appeal and are afraid that the appraised value might be more than the assessed property value, you can be sure that they will not submit the results to the property tax board without your confirmation.
Identify those you intend to Offer the Appraisal Results
Make sure that your appraiser knows who you want to use the reports. If you are buying a property; your intended users are the seller, the lender and the property tax appeal board. These people are established in the appraisal report and are the only ones authorized to use the report.