In-Depth Explanation Why Commercial Appraisal Rates Are High
If your are a property then you must know how commercial appraisers assess the value of their property. Most of the time they question the appraisal rates and why it would take several weeks before a commercial appraiser finish their work. If you want to know how appraisal process works then reading this article is a smart move.
First things first, you need to understand the policies and laws the affect the process of appraising a certain property. The incident in early 1990s became the reason why laws regarding real estate appraisals become tight and very strict. With the information at hand one of the laws imposed by the government is a necessity for the appraisers and the insurance companies related to such to be licensed.
The laws implemented by the government created a more rigid appraisal standards for appraisal practices thereby allowing local licensing bodies to get affiliated with licensed appraisers. The standards have been elevated to a higher level hence the appraisal process become so difficult. Understanding what those requirements are would surely enlighten those who are looking for commercial or residential appraisal services.
Not all people know the ins and outs in appraisal process for commercial establishments that is why you need to pay for the time and expert knowledge that appraisers have. In appraising a typical property, this would usually take from 30 hours to 60 hours. Compared to a 14-unit apartment building a 7-unit building would take lesser time for the appraisal rate considering the report made is in a summary narrative format. The time to complete the appraisal of a 24,000 square foot industrial facility and a 12,000 square foot industrial plant is almost the same. You must know that appraisal fees are not entirely reliant on the property value and the market value of a certain property.
If the fees are not directly affected by the market value and property value, what are then the factors that affect it? There are actually four things that influence the appraisal fees, for instance the complexity of a certain project, the needed turn-around time, format of the report and the data availability.
1. How complex the property is – If the property is complex in nature then more likely appraisers need to spend more time investigating the entire property. This will then take longer period of time before the appraiser can finish and the fee will be higher as well. That is just one aspect that affects the appraisal time and rate more so if you are still in search for a reliable appraiser to deal with you can go for Edmonton commercial appraisal services. If you are looking for Edmonton residential appraisers it is also possible, you just need to look online.