Real estate appraisal factors to keep in mind

First off, keep in mind that appraisals done on commercial real estate and residential properties vary in terms of the process, with the former tending to be more subjective in nature.  This is due to the value being derived from relative and regular rental rates versus the overhead.  In other words, underlying assets tend to be given more importance when it comes to residential properties.

Image source: realtyplusmag.com

But whether you’re having an appraisal for a residential or a commercial property, keep in mind that the actual inspection is just a small part of the entire appraisal process.  Appraisers don’t just examine your property but likewise take into account factors like zoning records, comparable sales, public ownership, and replacement costs.  All these are considered before the final estimated value of the property is reached.  This means that you shouldn’t expect to get the final value immediately after the inspection; the process can take days or even weeks.

Image source: realestateagentpdx.com

Never withhold any information pertaining to the property nor misrepresent the facts surrounding it.  Appraisers will be able to ask the right questions anyway, and if you are caught unable to verify, it can severely damage the credibility of anything else you say. 

Moreover, prepare all documents related to the property, from the tax bill and the blueprint if available to income statements.  Don’t waste time second-guessing why a given document is being asked and just comply; the sooner you do so, the faster the inspection and you’ll be one step closer to getting that appraisal. 

Look at online sites for common documents being asked for by appraisers and have these ready during the inspection.  Also, note that there are three types of report: a restricted use report, a summary report, and a self-contained report.  Research on the differences carefully and inform your appraiser what type of report you’ll need.

NovaStar Appraisalsis an independent hub for real estate appraisals. The company is devoted to assisting clients in finding the best appraisers for their properties. More tips and insights on property appraisal here.