We have talked a lot about what factors you should keep in mind when you are purchasing a commercial property. But we haven’t talked about the appraisal process yet. The appraisal can be daunting whether you are buying or selling a property. As you know, you need to have your commercial property appraised before putting it on the market and once you have decided on a property, you have to get is appraised before your mortgage company will give you the loan. Here are some tips to make the process easier.
The first step is that the appraisers will come to your property and evaluate it. This can take up to several hours depending on the size of the property. After this is done, they have to research public ownership and zoning records, different costs and compile comparable sales, among other things. This whole process could take weeks, so be prepared.
Don’t Distort the Facts
Appraisers will do research before and after the appraisal. If they ask you a question, do your best to answer it correctly. If you don’t know, tell them that instead of making something up or exaggerating the truth.
If an appraiser asked for items such as income statements, property tax bill or drawings of the property, provide them with what you can. They don’t want to spend extra time researching things that you can give them if they can help it. It might help you get your appraisal back faster if all of the information is received in a timely manner.
When you are buying a house and your lender needs the appraisal before they will lend you the money, you are not the appraiser’s client; the lender is. Because of this, they will not be able to give you any information regarding the appraisal. On the other side of things, if you are requesting the appraisal, you can be sure that they will not release any information to the property tax board or anyone else without your permission. If you want certain people to be able to see the report, you can identify them to the appraiser.
Date of Valuation
There are things that are out of our control that causes our appraisals to be lowered, so it is important that you establish a date of valuation. You can appraise a property in the past, present and future. Make sure to let your appraiser know this.
Let the appraiser know what your interest is when it comes to the property. Do you want to know the value of the property, free and clear? What about the value of the building and the property it sits on? Let your appraiser know which property interest you are looking to get appraised.
We hope that these tips have helped you learn a little more about the appraisal process so that when the time comes, you will know what to do. We have appraisers on staff full-time here at North Bay Property Advisors. Call us today!