About Our Directory
Commercial property appraisers offer an essential service to real estate investors. Whether you’re a buyer or a seller, you need the loan approval process to be completed ASAP. Working with a top-rated appraiser who can deliver the report quickly will make getting a loan faster. There’s no cutting corners when it comes to getting a precise appraisal for your commercial property. Either when working with mortgage brokers or direct lenders, accurate appraisals are at the heart of every commercial property investment.
Unfortunately, finding a real estate appraiser that’s right for you often takes a lot of time and research. Not only do you want the appraisal company to be quick, you also want it to be well-known, respected and trustworthy. Most towns have a selection of licensed appraisers to choose from, but finding the best company for your commercial property can be a challenge. Many real estate professionals, including lenders, borrowers and sellers, rely on accurate appraisals, so finding a reputable professional in your area is a must. Luckily, PropertyCashin offers an extensive list of state-certified appraisal companies in your location. Using our national directory will ensure that you find the best local appraisal services possible.
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Frequently Asked Questions
What does a commercial property appraiser do?
Commercial property appraisers provide value estimations for commercial properties of all kinds. These properties can vary greatly and include warehouses, offices, farms, hotels and retail centers, to name a few.
The job of the appraiser is to determine the current value of the commercial property. Appraisers help sellers find an appropriate asking price for their property while ensuring buyers are not overpaying. Not only do independent appraisers provide an unbiased value estimation, they also can point out major problems with the property that may affect its price.
How is commercial property valued?
The methods appraisers use vary depending on the property. The process of estimating the value of a large piece of commercial land will require a different expertise than appraising a small office building. However, there are generally three evaluation types used for a commercial appraisal. The cost approach, sales comparison approach and the income approach are the most common types of analysis used to estimate value.
Using the cost approach, the appraiser estimates how much the property is worth based on how much it costs to build an identical one. The appraiser also takes into account the physical condition of the building when determining a price. In the sale comparison approach, an appraiser looks at how much similar properties in the same location have recently sold for and compares yours to them. The income approach involves estimating the potential income the property is expected to bring in, and determining the optimal sale price based on it.
How long does a commercial real estate appraisal take?
Although residential appraisals can often be completed in just a few hours, commercial and industrial property appraisals can take anywhere from two to four weeks. This longer time frame allows appraisal companies to use the combination of the three types of property valuation analysis: the cost approach, sales comparison approach, and income approach.
Commercial appraisal reports need to be as in-depth as possible and are often over 100 pages long. The appraiser also needs to be able to fully inspect the commercial property to identify any problems and to outline possible improvements. However, this will never be as in-depth as a property condition report from a commercial property inspector.
How long is a commercial property appraisal good for?
Commercial property appraisals are typically only valid for up to four months from the date the property valuer hands you the report. Lenders will often reject any appraisals that are older than 120 days, but the expiration period for many banks is within 60 and 90 days.
Are commercial real estate appraisals public record?
Commercial real estate appraisals are not public record. These appraisals can only be accessed by the property owner and the appraiser. If you would like to share the report with a lender or potential buyer, you can ask for those people to be listed on the report as being authorized to view it.
What are the different types of commercial property appraisals?
There are three main types of commercial property appraisals. The first type of analysis used for a CRE appraisal is the cost approach. Using the cost approach, appraisal firms look at how much the property costs to build and they determine a current value based on those costs. The appraiser will make appropriate deductions if they find problems with the physical property or its foundations.
The second type is the sales comparison approach where the appraiser compares the property with the price a number of similar properties in the same area have sold for. Finally, there’s the income approach. Using the income approach, the appraiser has to estimate how much income the owner could expect to earn from the property. In order to do this, the appraiser reviews historical data from the owner’s or property manager’s reports. Then they calculate the property value based on the revenue it generates and on how fast it will allow to pay off the loan and start to bring clear profit.
How accurate are commercial real estate appraisals?
In a perfect world, a commercial real estate appraisal is 100% accurate and reliable. However, the reality is the appraisal is only as good as the appraiser. Appraisals are meant to be completely objective, but there is always some subjectivity that slips in.
For this reason, it’s sometimes recommended to hire multiple independent appraisers when an accurate value estimation is essential. By taking this precaution, you can compare the appraisals and make sure you have a figure you can trust.
How much does a commercial property appraisal cost on average?
The price of a commercial property appraisal changes based on a few factors. Not only does the cost of the appraisal depend on the experience of the appraiser, it also depends on the size of your commercial property.
Using a reputable appraisal firm, appraisal fees for small to medium-sized commercial buildings can be anywhere from $2,000 to $5,000. Valuation of larger properties, like shopping malls and industrial warehouses, can cost $10,000 and up. However, it’s important to remember that spending the money on an accurate appraisal now can save you much more money in the future.
How to get a commercial property appraisal?
To get a commercial property appraisal, you need to hire a professional state-certified appraiser. The best place to search for a reputable appraisal firm is in a directory like the one offered by PropertyCashin. Having access to a comprehensive list of top-rated local professionals will allow you to find the best appraisal company near you.
When appraising a commercial property, what is the appraiser most concerned with?
A physical inspection of the property is only one of the things an appraiser is concerned with. Although they will inspect the property, an appraiser will also investigate a number of other things when putting together a report. For example, they might collect information on zoning records, how much the property costs to build and even look at neighborhood demographics.
What is a desktop appraisal?
A desktop appraisal is an appraisal report that has been completed without a physical inspection of the property. The appraiser completes all of the research on the property remotely from their desk. This type of appraisal must still be completed by a state-certified appraiser, but the report is completed by using information from tax records, Multiple Listing Service (MLS) and Google Maps.
Desktop appraisals can be useful for some properties, especially those in average conditions. However, these appraisals tend to be much less accurate than full appraisals where the property undergoes a physical inspection.
Are desktop appraisals USPAP compliant?
The Uniform Standards of Professional Appraisal Practice (USPAP) is renowned in the USA for its high standards of practice and ethics. USPAP doesn’t require appraisers to complete physical inspection, so desktop appraisals are generally accepted by the organization. However, most lenders will only accept full appraisals when approving loans.
Is there a difference between a commercial real estate valuation and appraisal?
The formal appraisal with the appraiser’s report is called valuation. And an appraisal is a less in-depth estimation of the property value made for qualifying for a loan or determining the market price to sell the property. An appraisal can be done even by a broker.
For being able to conduct property valuations, an appraiser must complete a special training and be licensed. Commercial property evaluators provide evaluation reports that are legally binding and can be used in court. When settling an estate, for example, appraisals from realtors tend to be insufficient and real estate valuations are often required.
However, although the two terms are different, most real estate professionals use the term “appraisal” to refer to both.
Do commercial real estate agents or brokers do property appraisals?
In a real estate transaction, a real estate appraiser and an agent should be two separate and independent parties when it comes to providing an unbiased appraisal report. And if you need a property appraisal for another purpose than selling or buying real estate, you should hire a licensed appraiser rather than an agent.
When selling a property, it is common to work with the real estate agent or broker in an advisory sense. The job of the seller’s real estate agent is to set the best asking price and negotiate the best final price of the property in a real estate sale. The amount in the appraiser’s report doesn’t mean that it’s the exact market value of the property it should be sold for.
Are you a reputable commercial property appraiser?
If you’re an established, reputable and certified commercial real estate appraisal company that provides valuation & appraisal services to commercial buildings, apply to get listed on our directory.