What are the steps of a Commercial Appraisal?
Commercial appraisals are a fundamental part of assessing the value of a property but the appraisal process can be quite overwhelming, especially for those who haven’t gone through the process before.
At Martens Appraisal, we perform over 600 appraisals a year for over 100 different lending institutions. We have experience with all sorts of property types and are here to help. So let’s take a look at the steps of the commercial appraisal process.
Identify the Problem
Our first step is to determine the client, the intended use of the report, the type of value, and the relevant characteristics of the subject property. We take great care during this step to make sure that both the appraiser and the client are on the same page, this avoids any issues after the report is delivered.
Determine the Scope of Work
Next, we outline the amount and type of information to be researched and which analyses are to be applied in the assignment.
Collect the Data
Once the problem is identified and the scope of work is determined, the appraiser will gather information on the market area as well as comparable properties to understand the variables that may influence property values. At Martens Appraisal, we pride ourselves on being market experts. Our full-time research staff works constantly to make sure we have the latest sales and lease transactions in our databases.
Analyze the Data
Commercial real estate appraisal data analysis typically looks at the scarcity, demand, and utility of comparable properties to help the appraiser determine their opinion of the value of the subject property.
Estimate the Land Value
We don’t do this with every report, but when necessary sales of comparable land parcels are appraised in order to form an opinion of value of the land.
Determine an Opinion of Value
After analyzing the available data, the appraiser relies on it and their expertise to form a final opinion of value.
Prepare appraisal report
Martens Appraisal reports are delivered in a format as determined by the scope of work and defined by the Uniform Standards of Professional Appraisal Practice. Each format has its own requirements and the format used is determined based on the intended use and intended user of the appraisal.
If you need help with the commercial appraisal process, please visit our website or contact us today!