Appraisal
of a property is the process of evaluating worth and doing valuation of that
property. The process is carried out with the help of a professional
appraiser. For any commercial or residential property, it is must to
conduct a proper and formal appraiser before selling, developing and insuring
the property.
According
to Dean Graziosi, appraisal of commercial real estate property
is much complicated than a residential property. It might take a lot of days to
do complete and proper research of a commercial property. Keeping in mind
sensitive nature of the process, Dean suggests all of the realtors to bear some
facts regarding appraisal of their commercial property.
Dean
Graziosi is an expert realtor. He has started business of real estate from his
late teens. He is in the field since more than two decades. For Dean, real
estate rules and regulations are a must to learn before entering in the field.
Appraisal is one such rule. Dean is teaching his students rules and regulations
of real estate with the help of his books, live events and online forums.
He had
not taken any real estate education, may be this is the reason why his
teachings are not stereotypical to that of other so called real estate gurus
out there. Dean believes that taking appraisal of your commercial property is
different from just inspecting it. You must be very careful.
How Much Time Does It Takes to
Appraise Your Property:
You
should understand that inspection is just a small part of commercial property
appraisal. It can take one hour to several days. During inspection, appraisers
perform following duties:
- research on public ownership
- zoning records
- demographic and lifestyle research
- replacements costs
- rents
All of
the information is compiled and analyzed. A final report is made and then kept
for further proceedings.
Complete Information:
You must
provide complete and authentic information and documents of your property. The
documents include tax copies, property drawings, income statements etc. Some
people think that they will provide the documents if appraiser asked them, this
is nothing more than the waste of time.
Misrepresentation:
Never
misrepresent your commercial property. Appraisers are acute and they inspect
the property skeptically. They are the ones who have to answer court and
authorities so they try to remain as strict as they can. If you misrepresent
anything or provide false documentations, they will find out. It is just that
you will lose your credibility.
Is Appraiser Going to Share the
Information with the Borrower?
No, the
appraiser will not share the information with the borrower or the other
concerned party. If you are the lender and want to conduct the appraisal to
evaluate value of the property, appraisal will not disclose the information to
the borrower. Similarly, if you are requesting an appraisal for tax estimation,
appraiser will not disclose the information to related authorities.
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