There is need to have the right understanding of the commercial appraisal process. The reason why this is considered as crucial stems from the differences that exist between the procedure in this case and the residential property one. The difference between these two appraisals is that the commercial one is subjective.
The commercial appraisal process involves three main value aspects namely the cost approach, sales comparison approach and income capitalization approach. In cost approach, the assumption is made that the value of a property equals the cost of replacing it. You determine the sales comparison by comparing the direct units. You get the income capitalization from the rationalization of comparison.
Inspecting your property is only a small percentage of the whole commercial appraisal procedure. The time it takes to complete the inspection will vary depending on the size and the complexity of the property. Investigations about lifestyle and demographic information plus the zoning records and public ownership are some of the information that the appraisers are interested in during the process of inspection.
When a commercial appraisal process is being undertaken for you, it is important to give out true facts. Professionally, appraisers are skeptics and any information you give them will be verified from other sources. There will be no credibility for anything you say if you had misrepresented some facts previously.
At no time should you consider withhold any information at the time the process of commercial appraisal is being undertaken. When requested for things like the property tax bill, income statements and drawings of the property, it is advisable to produce them. These documents are required for the purpose of giving the accurate appraisal reports.
There is a strict code of ethics that commercial appraisers are required to have adherence to. Among them is the requirement to offer unbiased opinion. Disciplinary action can be brought out against an erring appraiser which can go as far as being stripped of the certification. When some of your requests are declined by the appraiser, it is because he desires to adhere to the code of ethics.
The person who requests for a commercial appraisal is the one that is deemed to be the client. If the purpose of the appraisal is for financing the lender is the customer since he is the one that ordered it. The obligation of the appraiser is that he cannot release the report or any other confidential information to you. Why this is essential is because the client confidentiality must be maintained. You can make the request to the appraiser not to avail the results to the property tax board if the intention of the process was a property tax appeal.