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Appraisal - Wikipedia, the free encyclopedia

Appraisal may refer to: Look up appraisal, appraisals, appraise, or appraisement in Wiktionary, the free dictionary. Contents. [hide]. 1 Decision-making; 2 ...

Real estate appraisal - Wikipedia, the free encyclopedia

Real estate appraisal, property valuation or land valuation is the process of valuing real property (usually market value). Real estate transactions require ...

Appraisal - Merriam-Webster Online

the act of judging the value, condition, or importance of something : the act of appraising something. : something that states an opinion about the value, condition ...

Appraisal Institute: AI Home

The Appraisal Institute, the nation's largest professional association of real estate appraisers, today encouraged consumers to winterize their homes to.

How to avoid a low home appraisal - Bankrate.com

A low home appraisal can kill the sale of a home. Here are tips to help you fight back.

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appraisal - definition of appraisal by The Free Dictionary

Definition of appraisal in the Online Dictionary. Meaning of appraisal. Pronunciation of appraisal. Translations of appraisal. appraisal synonyms, appraisal ...

Harris County Appraisal District

Applications are being accepted by the administrative judge for the state district courts in Harris County until October 15 for service on the Appraisal Review ...

appraisal - Wiktionary

Noun[edit]. appraisal (plural appraisals). A judgment or assessment of the value of something, especially a formal one. Derived terms[edit]. appraisal theory ...

Dallas Central Appraisal District

Dallas Central Appraisal District (DCAD) is responsible for appraising property for the purpose of ad valorem property tax assessment on behalf of the 61 local ...

Denton Central Appraisal District - Home

The filing deadline for business personal property and real property accounts sent appraisal notices after May 2nd is 30 days from the date the notice was ...

ARB - Travis Central Appraisal District

The Appraisal Review Board (ARB) is an independent, impartial group of citizens authorized to resolve disputes between taxpayers and the appraisal district.

Tarrant Appraisal District | TAD Online

Tarrant Appraisal District Information and Services online.

Real Estate Appraisal Business Guide: Understanding the Value of Your Commercial Property


If you are an investor considering buying a commercial real estate, you must know as much about a piece of property as you possibly can. One essential piece of information you must know is the value of the property. You can get this information by having an appraisal conducted on the property. A commercial real estate appraisal is typically performed by a trained expert who will look at several factors to determine how much a commercial property is worth.

 

Investors use appraisals to determine if the property is worth the purchase price. An appraisal is also necessary for insurance purposes as well as for property taxes. Typically, a commercial property insurer will want the value of the property confirmed before issuing a policy. Banks issuing loans will also generally want to know how much the property is worth.

 

Benefits

 

Appraisals work best in situations where an investor is purchasing a property for potential resale or rental income. Knowing the value of the property can help an investor determine how much to invest in renovations if he or she is planning to flip the property. If he or she wants to use it for rental income, knowing the property’s worth can make determining rental rates easier.

 

Appraisals Save Money

 

The person selling the commercial property is most likely trying to get as much money as possible for it. This may involve asking more than the property’s worth. Knowing the true value of a piece of real estate can prevent you from overpaying on the property itself as well as on the interest you will be charged on the bank loan. Additionally, your property taxes are based on the value of the property. Therefore, it helps to ensure this number is accurate.

 

Get the True Resale Value

 

If you are the one reselling the property, having an appraisal ensures that you get what the property is worth. According to Bloomberg, properties increased 6.3% in May of 2011. Property values change over time. If there have been significant developments in the community since you purchased the property, it may be worth much more than what you have paid. Having this information puts you in a better negotiating position.

 

Identify Areas That Require Maintenance

 

An appraiser does a full inspection of the property as part of the process of determining its worth. He or she can identify areas of the building that require attention. As a buyer, you may need to invest money into making these repairs once you own the property. However, you can use this information as a bargaining chip for reducing the overall price.

 

Insurance Purposes

 

Almost all insurance companies will want to know the value of the property they are insuring. Additionally, having your commercial property appraised can help settle insurance claims, should something happens to the building.

 

Pitfalls

 

Cost

 

Appraisals add an additional cost to the purchase of the property. This needs to be factored in as part of the total price of the investment.

 

Possibility of Low Valuation

 

Although the real estate market tends to be stable, there are times when values fluctuate. The appraiser looks at the values of surrounding buildings as well as the community as a whole when considering how much to appraise for your commercial property. If there are factors that negatively affect property values in the area, this can result in low valuation. This, in turn, can hurt your chances of getting a good price if you are selling.

 

Appraiser Mistakes

 

Appraisers sometimes make mistakes that can lead to financial consequences for you. This includes forgetting to include some parts of a building in the total square footage as well as overestimating the value of surrounding properties. These types of mistakes can make it more difficult to get a loan for the full amount you need to purchase or cause you to overpay for the property.

 

Pricing

 

The cost of a commercial real estate appraisal will vary from region to region and between companies. Some appraisers will also charge according to how much work is done. For example, they may charge one price for a basic report but charge another for a report that includes pictures, zoning research, and other services.

 

An appraisal for a commercial property can range from $500 to over $3,500 depending on the type of property appraised and the report ordered. Since an appraiser can end up saving you money by appraising the property at the right price, the cost is oftentimes justified.

 

Investing in an appraisal for your commercial real estate property can save you time and money. If you are a buyer looking for a piece of property to invest in, you can put yourself in a better position to negotiate if you know the true value of a piece of property. Additionally, it will also make it easier to price rental space as well as help ensure you are not paying more taxes than you actually owe.

 

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