A commercial real estate appraiser estimates the value of commercial real estate property – land, as well as the current buildings on this land before it is sold, taxed, mortgaged, developed, or insured. Commercial appraisers specialize in properties that are used commercially such as stores, buildings, and hotels. They determine the monetary value of properties, merchandise, and business assets for companies, which include real estates and other types of assets.
When commercial appraisers are estimating property value, they are noting the unique characteristics of the property and its surrounding areas, like the highway nearby. Appraisers also consider about the general condition of the building’s foundation as well as the roofs, or if there are renovations. Aside from getting pictures of the outside areas of the building in order to document the condition, the appraisers might photograph certain rooms or features of the property.
Once the appraiser has visited the property, he/she will estimate the current value of this property by taking into consideration essential factors such as lease records, comparable home sale, view, location, income potential, and previous appraisals. During the procedure, the appraiser will meticulously record their observations, research, and methods that have been used in the calculations of the property value.
Duties of a Commercial Appraiser
•Verify the legal descriptions of the real estate property from the public records.
•Photograph both the interiors and exteriors of the properties.
•Inspect new and existing commercial properties, and not their unique characteristics.
•Use comparables, or those similar properties nearby, in order to determine the property value.
•Prepare their written reports about the value of the property.
•Prepare and uphold current information about the real estate properties.
•Determine changes in properties because of demolition or construction.
•Determine the cost or worth of having major improvements, inspect general improvements for these are essential to add worth or value to the entire structure.
•Defend appealed assessment.
•Attend public hearings for assessments.
•Analyze the assessed values and then explain them to property owners.
•Determine the taxability of the properties through market trends, sales analysis, and structural measurements.
Although commercial appraisers of real estate usually work in offices, they are spending a huge part of their daily work in fields, performing site visits. Most appraisers work on a full time basis and during the regular business hours.
An Appraiser of commercial real estate properties such as hotels, office buildings and other types of businesses must have a Bachelor’s degree. In addition, appraisers must also be certified or licensed, but the requirements vary by states. Mostly, employers require candidates or applicants to take appraisal courses, complete on-the-job training via an apprenticeship, and work for sufficient hours, in order to meet the current requirements of appraisal certificates or licenses.
•Analytical skills: They must carefully analyze all information and date before making final written reports.
•Customer services skills: Being friendly and polite is important.
•Organizational skills: These are needed accomplish the tasks related to assessing or appraising a property.
•Time management skills: Managing time, as well as meeting deadlines, is essential.
•Problem solving skills: The ability of developing and applying alternative solutions is vital to successfully complete reports on time.