How to Choose a Commercial Appraiser
While you will find several commercial appraisers today, finding the right one for you can be daunting. After all, these are different companies unique in heir own ways. So what should you consider when making a choice?
1. Define your need.
First of all, know why you need an appraiser. Property tax disputes? Expanding your business? Company investment? Remember, appraisers specialize in different fields.
2. Check qualifications.
According to the Internal Revenue Service (IRS), regardless of an appraiser’s licensure or certification, he must be “Qualified,” meaning he has to conduct appraisals as his primary profession.
3. Talk to your prospects.
When interviewing potential appraisers, your main objective must be to check whether they have the right qualifications. That means asking for their resume and checking their listed experience. You should also ask for recent work samples as proof of their knowledge and competence. On top of that, ask them what methods they use for their appraisals.
Pick an appraiser who has the patience to explain their work job and what they consider when performing appraisals. At the same time, pay attention to the questions they throw at you concerning the assignment. Just by the things they want to know, you can easily see through an appraiser’s level of commitment.
4. Choose someone who offers full disclosure.
Definitely, your appraiser must offer full disclosure, including lack of knowledge on the subject, any interest they may have in the subject property and whether or not they have performed an appraisal on said property within the last three years. In any case, an appraisal needs to be done objectively, and full disclosure will help you decide if you should hire a different appraiser for the job.
Other Crucial Matters
Before you hire a specific commercial appraiser, you need to consider a few more things, including:
> Appraiser’s litigation experience
You can never rule out the possibility of litigation. Choose an appraiser who will be there when you need them to give you the right support. When necessary, they should be able to defend their work in a court of law.
Appraisers either collect a fixed rate or a per-item or per-hour fee. Avoid anyone who will charge a contingency rate, depending on the final opinion of value. In fact, this is against the Uniform Standards of Professional Appraisal Practice (USPAP)s’ code of ethics.
Lastly, before you request a bid from an appraiser, they have to know whether the subject property is vacant, leased or owner-occupied. They should also want to know the purpose for the appraisal. With this, they can tell he necessary proper rights for appraising and analyzing the extent of the assignment as they give you a good bid.