How To Write The Perfect Commercial Property Appraisal

An appraiser is the person who evaluates a commercial property and writes the report. It represents a key player in the commercial loan transaction.

A good commercial property appraisal must be based on a thorough, honest and comprehensive valuation. Brokers often face lower-than-expected appraisals, but that`s because many of them are not ready to support their value argument. Appraisers need transaction, income and building data that include property history, site and market data, demographic reports, rental information etc.

Valuation premises must be carefully examined. Make sure you do not include low value estimates caused by false assumptions:  missing or expired leases, property that should be valued in leased fee estate but is in fee-simple ownership, or property valued partially vacant instead of “fully leased”.

Your report must be based on the rules of your state’s appraiser-licensing department, so make sure you have a copy of them that you can consult every time you need, and have a thorough commercial real estate appraisal software for accuracy.

Avoid writing the appraisal in narrative format; better use blank commercial-appraisal forms as content checklists.

You can also choose to collaborate with an appraiser; they typically accept to provide consultation, although the object of the consultation cannot be to advocate your position.

 

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