Whether you are buying, selling, leasing or lodging a property tax appeal, a commercial appraisal is often necessary. This process is used in all types of industries from banks and financial institutions to private clients and law firms. Although the actual commercial appraisal is done by a professional, there are several key steps every business should take before and during the process.
5 Things to do During a Commercial Appraisal
1) Get an Inspection
To get the ball rolling, you will need to schedule an inspection of your commercial property.
Your certified appraiser will investigate public ownership and zoning records, research neighborhood demographics, compile comparable sales and more. Then, all this valuable information will be analyzed in order to create a report to detail the inspection’s findings.
2) Don’t Misrepresent the Facts
Although it may seem tempting to overinflate figures, honesty is the key to the commercial appraisal process. Since your appraiser will always seek to verify any claims you have made, it doesn’t pay to misrepresent the facts. Even a small fib could discredit you as a source of information.
3) Don’t Withhold Information
During a commercial appraisal, it also helps to be forthcoming.
You may be asked to provide documentation, including property tax bills, blueprints, income tax statements or other relevant information. Since appraisers are obligated to maintain client confidentiality, it’s not in your best interests to withhold information.
If you comply with appraisers’ requests for documentation, you will help them do their job more quickly and thoroughly.
4) Be Clear on the Intended Goal
From purchasing a property to appealing a property tax hike, commercial appraisals may be requested for different reasons.
Before the process begins, make sure to tell your appraiser about your interest in the property and how you are planning to use the report. This will help them specially tailor the report to your goals. And, it will also allow them to identify the people and parties who will be authorized to view and use the finished commercial appraisal.
5) Determine the Desired Date of Valuation
Finally, it’s important to establish a date of valuation, because commercial real estate prices frequently fluctuate over time. A valuation that is taken out of context could overestimate or underestimate your property’s market price.
3 Options for Date of Valuation
- Date of inspection
- A retroactive appraisal
- A prospective (or future) appraisal
Although it’s now easy to look up online what a property might be worth, only a commercial appraiser can provide a true valuation. For more than 25 years, KTR Real Estate Advisors has provided expert commercial valuation and consulting services in New York City and national markets. Contact us today to learn why we are the commercial real estate estimators you can count on.