At AmeriMac Appraisal Management, our team is proud to provide commercial real estate appraisals on a wide array of commercial properties in all 50 states. Our commercial appraisals are compliant, accurate, and delivered with efficient turnaround time. Work with an appraisal management company that will give your commercial property – your investment – the one-on-one attention it deserves.
Properties that are eligible for a commercial appraisal include apartment buildings, office buildings, condominiums, industrial sites, shopping centers, and land that is up for sale. The information that comes from a commercial appraisal is needed when a property (building or land) is in the process of being developed, sold, insured, or mortgaged by a mortgage lender, a real estate brokerage, or a financial institution.
A commercial appraisal is conducted by a certified appraiser who is tasked with gathering and analyzing information on the property. This data is used to determine the value of the property for the client – a lender, broker, or financial institution. Like all appraisals, a commercial appraisal report must satisfy the state and federal requirements such as USPAP (Uniform Standards of Professional Appraisal Practice) as well as the client’s specifications. No appraisal is ever the same as another.
Here are a few situations where a commercial appraisal report could come in handy.
The commercial real estate appraisal process begins once the appraiser has collected information such as the intended use of the property and any relevant characteristics including the condition of the property. Then, the scope of work is established, where the appraiser determines what kind of information and how much will be needed to generate a value on the property. This information could include data on the area’s market and comparable properties. The appraiser collects, verifies, and analyzes the data, creates an informed opinion on the value of the property, and produces a commercial appraisal report. The fees for a commercial appraisal can vary depending on the size of the property and the scope of the appraisal.
The value of a commercial property can be determined in a variety of ways – consistently being built on a foundation of data from a certified appraiser. Below are three common approaches that are used to appraise the value of a commercial real estate property.
An appraiser using this method equates the value of this property with the cost of building a replica. They take depreciation into consideration to create a fair market valuation. This approach is typically for new and unique properties that have few comparable properties.
An appraiser proceeds based on the assumption that a buyer will pay based on what comparable properties have sold for. This process is best for properties that have many properties similar to it in terms of size, condition, location, floor plan, etc.
A lender and the appraiser use past data to forecast how much income a property will make over time. This method is typically used for properties like large apartment buildings, office buildings, and shopping centers. This helps the investor better determine when their investment will be repaid.
Our trustworthy team of carefully selected appraisal experts is ready to serve you. Contact us today to see how we deliver fast, accurate, and compliant commercial appraisal services.