In 2015, nearly 78 billion dollars of commercial construction was reported in the U.S.
Commercial real estate continues to be a driving force in our national, and local economy.
Studies show that investment sales grew 8.4% nationally in Q2 of 2016, as compared to 2015. Here on the East Coast, Northern New Jersey was ranked among the country’s top 5 metropolitan areas for industrial investments in 2015.
Commercial appraisers aide this market growth by providing integral assessment services. To ensure the public is served credibly and fairly to that end, The Appraisal Institute has established a code of ethics for valuation professionals.
Banks, attorneys, private individuals, and government agencies rely upon these valuation professionals to perform commercial appraisals for a variety of reasons. Here are the top six.
1) To Establish Fair Market Value
Lending institutions hire commercial appraisers to determine the value of a commercial property. This information helps lenders approve or deny loan requests, and determine loan amounts. For both the seller and buyer, an appraisal helps establish fair value for the sale or lease of a property.
2) To Save Money On Taxes
Many commercial property owners are able to save money by successfully appealing property taxes. One of the documents needed in an appeal is a property appraisal.
3) To Settle Estates And Split Assets
Establishing asset value is critical when settling estates between parties named as beneficiaries, and in divorce settlements.
4) To Expand And Grow Business
Obtaining capital to build or expand a business often starts with a commercial appraisal.
5) To Establish Just Compensation
A commercial real estate appraiser can help both governmental agencies and property owners establish just compensation in cases of Eminent Domain and Partial Takings.
6) For Litigation Support
Forensic appraisal services include documentation, research, rent surveys, feasibility studies, and expert court testimony.
Choosing The Right Report, And The Right Appraiser
Along with these six reasons to hire a commercial appraiser, there are three types of appraisal reports: summary of appraisal, self-contained, and restricted use. Learn what type of report you need, depending on your situation.