5 Important Facts About Commercial Real Estate Appraisals

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5 Important Facts About Commercial Real Estate
Appraisals
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• Appraisals carried out for residential properties
  vary greatly from those carried out for
  commercial real estate, and there are a few
  points it can be handy to be aware of before you
  seek out a valuation company
• 1. The appraisal process may take days, even
  weeks, to complete
• Inspecting the property may be the first step in
  the appraisal process, but there are many other
  important aspects of an appraisal that will need
  to be researched and analyzed, before a report
  can be compiled. Demographics, zoning records and
  public ownership, to name but a few, will all
  have to be taken into account, meaning that for a
  thorough and well conducted appraisal by a
  reputable company, it may take weeks to finalize.

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• 2. The Uniform Standards of Professional
  Appraisal Practice must be adhered to
• There are many things that this strict code of
  ethics ensures that appraisers stick to, one of
  which is to give an honest and unbiased opinion
  to their clients. If it is discovered that they
  are not following the code of ethics, then they
  may be subject to disciplinary action from the
  relevant state and their certificate to practice
  may be revoked.

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• 3. Appraisers can give clients one of three
  different types of reports
• The cheapest type of report given during an
  appraisal is a restricted use report it is also
  the shortest type but is only to be used by the
  client, and not by any other outside parties. The
  size of the property being valued and the depth
  of the appraisal will affect the fee, but you
  could realistically be looking at a cost of
  around 2,000 to 2,500. Coming in at a cost of
  more than 3,000, a summary report makes a
  summary of all of the data and analysis, and the
  report can be used by any relevant persons.
  Thirdly, there is a self-contained report which
  is not often used, but which contains every
  detail of the data and analysis.
• Informing your appraiser of how exactly you wish
  to use your report will help them advise you as
  to which type will be best for you.

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• 4. The appraiser must be informed of who will be
  wanting to access the report
• Whoever you mean to share the appraisal report
  with must be identified and named by the
  appraiser so that their details can be recorded
  in the report it is then only those named
  individuals who will have access to it. Examples
  of others who you may wish to share the report
  with are the seller, your lender, or your local
  property tax appeal board.

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• 5. Be clear about what your interest in the
  property may be
• If youre only interested in the value of a
  particular property, then this is known as fee
  simple interest, but if youre more interested in
  the value of a property from a landlords
  perspective when there are tenants involved, this
  is known as a leased fee interest. You may also
  want to know what a lease may be worth to a
  tenant, in which case you would want a leasehold
  interest.

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• East Tennessee Valuation Inc. is a commercial
  real estate valuation and consulting firm based
  in Knoxville, Tennessee. Our services include
  appraisals, appraisal reviews, consulting,
  evaluations and expert witness litigation
  support. If you are looking for real estate
  appraiser in Tri-cities, TN, visit us. Our
  commercial real estate consultants in Tri-cities,
  TN have the knowledge, experience, technology,
  and the skills to help you make an informed
  decision.