Effective Tips for Choosing Commercial Real Estate Appraisers
If you are looking to get an accurate value for your commercial property, it is important to hire a competent appraiser. Here are some tips for choosing a commercial real estate appraiser.
When seeking a commercial appraiser, it is a good idea to consider one that specializes in your geographical location. This will help them acquire firsthand knowledge of the location, although most commercial appraiser mostly focus outside the market area. They have knowledge of the amenities, facilities, and properties that have been sold recently.
Make sure the appraiser you choose has experience appraising commercial properties that are similar to yours. This way, they are likely to know the ins and outs of the assignment and you can be assured that they will complete the task at hand with a lot of competency. Besides, if you will be submitting the appraisal for tax purposes, you need an experienced professional who will ensure that it meets the requirements of the Internal Revenue Service. A good way of evaluating their level of competency is by inquiring for a slit of references that you can contact.
Ask the appraiser to provide you with proof of their licensing and ensure that it meets the requirements of your state. An appraiser with a current commercial license has been authorized to operate after meeting certain requirements. Visit your states licensing board such as the Bureau of Real Estate Appraisal to check if the appraiser license is valid. You can also check if they have any disciplinary actions, revocations or suspensions.
Also, check the qualifications and credentials of the appraiser before hiring their services. They need to complete their education from a recognized organization in order to acquire the right skills for operating as an appraiser. They should be active members of a professional appraiser’s association which requires its members to follow their standards for their training and education.
Review the background information of the commercial appraiser online to help you make an educated choice. Reputable appraisers will adhere to set code o ethics when evaluating your property in order tom ensure accuracy. Getting reports from appraisers who work to give you a value that you want and not one that is based on the market data can cause you problems in the future. Similarly, ask to meet the individuals who will be doing the inspection and write the report of the valuation.
While choosing an appraiser, it is critical to know which appraisal method they will use. The appraisals may use data of recent sales or listing information of various agents to come up with the valuations.
Last but not least, inquire about their fees so you can make a final decision. It should not be the only determining factor as it will determine the type of report you will receive.