Are you in need of a commercial real estate appraisal? There are several important things you should consider before hiring an appraiser.
Commercial real estate appraisals generally require much more research and analysis than residential real estate appraisals. Often times, commercial real estate appraisals require the development of at least two different valuation methods: the sales comparison approach and the income approach. Sometimes a third approach, the cost approach, will also be required. Many commercial real estate appraisals require the appraiser to analyze the income producing potential of the property, which means your appraiser will want to analyze leases, rent rolls, and income and expense data of the subject and comparable properties. The appraiser will then compare this information with comparable information to see if your building is performing to its market potential.
Not all real estate appraisers can appraise commercial property. In fact, the majority of real estate appraisers cannot perform commercial valuations. Commercial real estate appraisers have a Certified General license, which allows them to appraise all types of real estate. This type of license requires more education, training, and experience than other types of appraisal licenses.
Commercial real estate appraisals generally cost anywhere from $1,500 to $5,000 or more. Cost depends on a variety of factors including the type of property you need appraised, its location, the intended use of the appraisal, the number of valuation of approaches required, and the availability of data. You can also expect that more experienced appraisers will charge a higher fee for their expertise. That means when ordering an appraisal you should keep in mind that the lowest fee quote may not provide you with the most reliable appraisal report.
When interviewing commercial real estate appraisers, it’s always a good idea to ask the following questions:
In addition to determining the fee, turnaround time, and the appraiser’s experience, it is important to know if the appraiser you are hiring has any designations. Our President, Joe Sullivan, has obtained his MAI designation. The MAI designation is a prestigious designation awarded by the Appraisal Institute to those appraisers that have shown a high level of appraisal expertise through a series of coursework, exams, demonstrations, and experience hours.
Orion Appraisals provides commercial real estate appraisal services throughout Minneapolis-St. Paul and the greater Twin Cities metro area. We appraise all types of commercial real estate including apartment buildings, offices, industrial buildings, retail properties, and other types of commercial real estate including special-use properties.
For more information about how Orion Appraisals may assist you in your commercial real estate appraisal needs, contact us today!
St Paul Appraisal Office
Minneapolis Appraisal Office