10 Key Factors to Consider When Choosing a Commercial Real Estate Appraiser

 


Selecting the optimal commercial appraiser directly impacts the quality of valuations informing property deals and developments. Yet given lacking state regulations governing these niche appraisers, identifying truly qualified candidates proves challenging. Use this exclusive 10-factor checklist to vet commercial appraisers thoroughly before engaging services.

1. Local Market Expertise

A commercial appraiser lacking specific familiarity with your metro or county cannot accurately value regional property dynamics influencing cap rates, rents and desirability scores. Verify appraisers reside locally with abundant in-market valuation experience.

2.  Property Type Experience

An appraiser's expertise must align with your property category whether that is retail centers, warehouses, offices, apartments, hotels or special-use buildings. Cross-category experience rarely translates for precise appraisals.

3. Intended Use Expertise

From capital sourcing to property taxes to litigation, appraisal uses dictate methodical differences. Seek Commercial Real Estate Appraisers with credentials and references backing expertise around your exact intended valuation use.

4. Appraisal Institute Membership

Beyond state licensing, membership in professional groups like the Appraisal Institute proves commitment to continuing valuation education and ethics. Confirm membership is current and in good standing.

5. MAI Designation

The Appraisal Institute's MAI remains the only accredited designation purely focused on developing skillsets in complex commercial and investment property valuation. Fully designated MAIs represent the commercial field's highest standard.

6. Sample Appraisals

Expect prospective appraisers to provide recent reports with identifying details redacted to showcase their skills. Appraise the quality yourself or allow a commercial broker to contact to assess.


7. Specialized Coursework

Advanced coursework in topics like litigation, contaminated site valuation and land development analysis indicates professional dedication for handling specialized appraisal complexities.


8. Client References

Reputable Commercial Real Estate Appraisers readily provide client references you can contact to candidly evaluate work quality, reporting, timeliness and analytics used.


9. Reasonable Fees

Commercial appraisal fees vary based on assignment complexity, property size and analysis methodology. Verify fee quotes align reasonably with scopes of work detailed so ambiguous surcharges don't erode value.


10. Likeable Personality

While lesser weighted, opting for an appraiser exhibiting personality compatibility can impact communication effectiveness regarding the most complex valuations.


Remember, capabilities mean everything when choosing providers influencing million-dollar decisions. Master this 10-factor checklist for confidently securing a commercial real estate appraiser truly matching your valuation needs. Everything stems from advanced expertise.

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