Everything To Know About Commercial Real Estate Appraisal
An appraisal is necessary for commercial buildings that are newly bought or those that are being refinanced. This is needed because the FHA insures the loan, VA guarantees it, and most conventional loans are federally linked. Usually, there are three types of appraisers. Those are not the only ones that exist, but there is also timber, agricultural and industrial appraisers as well.
The residential appraisers always reject other types of appraisals because they are not allowed to them and also they do not have the expertise needed to perform them. There are three categories of appraisers be it commercial or residential; they can either be certified, licensed or general, so they are all not the same. The appraisers who have been licensed have the least education compared to the rest, and they can only do appraisal up to some certain value.
This is unrealistic because you only know the value of the property once you are done with the appraisal. As for the appraisers that are general they only do the appraisal up to a given amount of the commercial. As for the general appraisers, they can appraise any property whether commercial or residential.
The things that the appraiser has to have to begin the appraisal is the address and the contact number of the homeowner or the agent. That is where the initial file work starts. After that a search is conducted of the area, the neighborhood, the type of houses but there, their age and the range of the prices. If they get all the information on one trip, they will not be needed to visit the premises physically again. They go ahead and contact the person in charge of the property either the homeowner or the agent. If the house or commercial building is on lockbox that makes things easier for the person doing the appraisal.
The appraiser takes photos of the front and back of the house and one from the street as well. Places like the garage, the porches, bay areas are also taken pictures as they are part of the house has to be appraised. To calculate the living room the appraiser has to omit the unfinished areas, the unheated regions such as the utility area and the regions above the first floor.
An appraisal is the same as saying that the building has undergone a physical exam.
The front door, ceramic tiles, and windows to the screens are considered in an appraisal. The appraiser wants to know what the buildings next to your place are valued at. The results of the appraisal have to be realistic and true.