In-Depth Explanation Why Commercial Appraisal Rates Are High
A number of people are not aware on the process that commercial appraisers need to undergo in assessing the right market 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.
The first thing that you need to learn is the laws governing the appraisers’ work and in the process of appraising properties. If you are wondering why laws pertaining to real estate are tight well then it is due to the past events that take place in the real estate industry on the early 90s. The result is obvious the government is now cognizant with the credibility of the appraisers therefore requiring them to obtain a state license.
With new laws implemented regarding appraisal standards licensed appraisers are now oblige to affiliate in a state appraiser licensing agencies. The standards have been elevated to a higher level hence the appraisal process become so difficult. That is why a person who is in need of appraisal services, commercial or residential need to learn what those requirements are.
When hiring the services of an appraiser what you are paying is their knowledge in this area and the time they allot in doing so. In appraising a typical property, this would usually take from 30 hours to 60 hours. If the report is in summary narrative form then more likely the time it takes to appraise a 7-unit apartment establishment is less time-consuming compared to a 14-unit building. Keep in mind that the industrial plants that is 12,000 square foot in area would just finish an appraisal process similarly to a 24,000 square foot establishments. 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. Intricacy of the project – needless to say the more complex the project is the more the appraisers need to investigate the scope of the area. If a certain appraiser would take long in this project then you can expect to spend substantial amount of money for it. That’s just how it is after all the project is complicated more so if you have not found a credible commercial appraisal service provider to contact you can search for Edmonton commercial appraisal services. They have also Edmonton residential appraisers so you can also check it out.