What is the Process of Obtaining Commercial Property Appraisal Services? Friday, December 08, 2017
Do you require commercial property appraisal services? If you’re in the market to buy or sell commercial property, you may have been asked to provide an appraisal report; however, you may not necessarily have known what an appraisal report is. Sure, it’s pretty easy to guess that it has something to do with inspecting or examining the value of commercial real estate; but you may be wondering what the reason is for providing this information, and what impact it has on a potential sale. Below we’ve provided an overview of the commercial real estate appraisal process.
1.) Determine the Need for Commercial Property Appraisal Services
A typical commercial real estate appraisal process begins when someone involved in a commercial real estate deal, generally a loan agent or financing organization, requests that commercial appraisal services take place. They need to know the current value of the commercial property before preparing to lay out the financial resources for the property. Additionally, they want to make sure that they are not overpaying or getting involved in a poor investment. For these typical reasons, the financial institution will insist that one of the parties involved, usually the buyer, hires a commercial property appraiser to investigate the property. The comercial appraisal cost is usually appended to the sale price of the property; but quite often, one of the parties involved in the process will offer to absorb the commercial property appraisal fees as an incentive to buy. The commercial real estate firm or financing institution that is involved will supply a list of appraisal management companies to make the appraisal process quicker and easier.
2.) On-Site Evaluation of the Property
Once the commercial property appraisal services have been arranged, the real estate appraiser will visit the property and begin the process with an evaluation of the exterior. They will look for cracks, water damage, problems with the foundation, and similar issues that could prove to be costly later. Afterwards, they enter the property, where they will look for much of the same issues, as well as potential health and safety code violations. On the other hand, they will determine if there are any positive aspects, such as upgrades to various offices and rooms, a nice view, whether the property is in a prime location, and other aspects that might make the commercial property more desirable.
3.) Off-Site Research and Analysis
Finally, the commercial property appraiser will review the notes they have recorded during the appraisal job and begin to investigate the neighborhood. Thre appraiser will evaluation comparable commercial properties for sale in the area, as well as properties that have recently been sold. They will determine if the property is in a desirable location, if there is easy access to major highways or public transportation, and so on. By compiling and reviewing all of this information, the appraiser is able to determine how much the property is worth, as well as a fair price to buy or sell the property.
Commercial Property Appraisers Since 1938
A quality commercial property appraiser can level the field between the seller and buyer when the market favors one or the other. They ensure that everybody gets a fair price and will, ideally, walk away satisfied. That’s why it’s always a good idea to consider hiring a commercial real estate appraiser. Contact The Robert Weiler Company to inquire about our professional commercial property appraisal services today: 614-221-4286.