When it comes to commercial real estate, small business owners have a lot to digest. And of the scary topics of real estate among them is the appraisal. This is because the commercial real estate differs a lot from residential real estate; so the appraisal of commercial real estate is also quite different from the residential real estate.
The inspection of property is just a part of the appraisal process:
Depending on the complexity and size of the commercial property that has to be appraised, it may take anywhere from one hour to several hours in the inspection of the property. After the inspection appraisers collect a whole lot of data from other sources too about your property. These sources include Public ownership records, tax records, MLS listings, zoning records and so on. Demographic lifestyle information, rentals and replacement costs are also collected and at the end all this data is combined together for arriving at an opinion of value.
Misrepresent the truth may turn out to be costly:
You should never try to misrepresent the facts about your property in the hope of manipulating the appraisal process and getting an advanced value. This tactic may fire back right away because appraisers are professional skeptic about their work. If you are trying to misrepresent the facts, they will fast get their eyes on your lies and won't believe in something else that was said by you.
Do not deny the property details:
You may be asked by the evaluator to provide some property tax bills, sketch or drawings or some other details. In that case, you should provide these things to the appraiser as they will make his/her work easier. Appraisers don't have any interest in intentionally increase the amount of paper load in their bags so they ask you only for the things which seem imported to them for some reason.
Appraisers have to adhere to a strict code of ethics:
All appraisers are thankful by law to comply with a strict code of ethics, which is known as the Uniform Standards of Professional Appraisal Practice or USPAP in short. Failure to comply with USPAP may result in the revocation of appraiser's certificate and in some cases even legal actions may be taken against the oppressors.
If you avoid these 4 mistakes then you are much more likely to get your commercial property appraised for the right value.
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