A commercial real estate appraiser is a specialist who estimates the value of commercial properties in monetary terms. These can be vacant lands in industrial estates, factory buildings, office apartments, hotels, shopping malls, and retail establishments. To do so, this specialist will physically inspect the properties and collect all the necessary public records. The specialist will even familiarize himself with the economic conditions of the area of the properties’ location. Only then can this expert conduct a thorough financial analysis to prepare an accurate valuation report.
Mack Prioleau– Why do business property owners need to hire commercial real estate appraisers?
Mack Prioleau is a commercial real estate specialist from Dallas, Texas, with years of valuable experience under his belt. His area of expertise lies in developing vacant commercial properties in industrial sectors. He has a bachelor’s degree in Economic and Corporate Strategies from Vanderbilt University. Currently, he holds the post of Associate in a prominent commercial real estate company in the state. He is even an ardent traveler who has visited more than 19 countries.
He explains that owners of business properties might require the services of professional commercial real estate appraisers to:
- Assess the fair market value of their business properties to fix reasonable sale prices,
- Prepare impartial valuation reports they need to support lease negotiations with third parties,
- Assist them in preparing appeals in IRS tribunals or law courts to revise unjust tax assessments,
- Determine the proper value of the properties they intend to keep as securities for securing mortgages,
- Demand a reasonable consideration from the government when confiscating their properties for public use, and
- To revise the book value of the properties for negotiations during upcoming business merger deals, and
What do commercial real estate appraisers do?
Commercial real estate appraisers generally work in specific business localities. They acquaint themselves with the economic and environmental issues of these areas. These concerns normally affect the fair market value of commercial properties in the locations. Commercial appraisers thoroughly evaluate only one property at a time before proceeding to the next one. In doing so, the specialists perform the following functions:
- Verify all the relevant legal documents relating to the commercial property available in the online public records sites,
- Conduct a physical inspection of the property to note down its inherent characteristics,
- Take high-quality photographs of both the inside and outside areas of the commercial property,
- Assess the monetary values of other comparable commercial buildings in the vicinity of the property, and
- Prepare impartial self-contained, summary, and restricted-use valuation reports of the commercial property.
Mack Prioleau sums up by saying owners can get an impartial, fair market value on their business properties by hiring commercial real estate appraisers. The valuation reports these specialists prepare can help them in many instances. They use the documents in making appeals against unjust tax assessments, secure mortgages, or fix sale price considerations.
However, they need to know how to select the right experts. The appraisers they choose should have sharp analytical abilities, good communication skills, and sound judgment. Above all, these experts should possess proper certifications from creditable appraisal Institutions and have valid licenses.