FREQUENTLY ASKED QUESTIONS
What is commercial real estate appraisal? How does it work?
A commercial real estate appraisal is an analysis of real property to determine the value of the property. Anyone can order an appraisal. The person that orders the appraisal is the client. If you want a loan on a property, then the lender needs to order the appraisal directly from the appraiser, in order to comply with current federal regulations.
Here are situations in which you need a real estate appraisal:
Appraisers are licensed by the State of Texas. Steven Adams is currently licensed with the State of Texas and is a State Certified General Real Estate Appraiser. Mr. Adams has completed the continuing education requirements for State of Texas certified general real estate appraisers. Steven Adams has completed the continuing education program for designated members of the Appraisal Institute.
If you need a real estate appraisal, then call an experienced real estate appraiser you can trust. Mr. Adams has 30+ years of experience in real estate appraisal, in the Central Texas area, in all property types and value ranges and will help you fulfill your appraisal needs.
How do residential and commercial appraisals differ?
Residential appraisals are prepared by licensed or certified residential appraisers and provide an estimate of the market value of a house, condominium, or townhome.
Residential appraisal reports are typically prepared on forms, approved by the lending community or secondary markets.
Commercial appraisals are prepared by a certified general appraiser. The term “general” means that the appraiser is approved with the state to appraise all types of real property, including commercial.
Commercial appraisal reports are typically prepared as custom narrative formats, which include descriptions of the appraised property, neighborhood, the three approaches to value, comparable market data, maps, aerial photographs, and other exhibits in support of the appraisal process and the value conclusion.
After the appraisal is ordered, the appraiser and client schedule a convenient time to complete the on-site inspection. Appraisers say “the more information the better”. If you have a survey, site plan, building plans, copies of leases, and other documents relating to the property, these should be emailed or given to the appraiser at the inspection. These documents will help the appraiser understand the property and prepare a more complete and accurate appraisal report.
After the appraiser completes the physical inspection of the property, he researches market data, which includes comparable sales and listings, and comparable rentals, as appropriate. Sales are given more weight than listings because sales are an indication of marketplace activity and property owners can list their property for any amount, which is usually high.
Once this research phase has been completed, then the appraiser prepares the appraisal report on his computer, using a word processing program such as Word, a spreadsheet program such as Excel, and other software applications.
Arrangements are made to pay the appraiser and then the final report is delivered by the appraiser to the client. This completes the appraisal assignment. If the client has any questions after reviewing the appraisal report, they should contact the appraiser who will answer them promptly. In my practice, I use a lot of email, to which I can attach files and provide links. I am also available to visit with my clients by telephone. My office is just one telephone call away. Call or email me anytime.
What should I look for in an appraiser?
Experience, ethics, and pride of authorship.
How do I hire an appraiser?
Google, Bing, Yahoo, and Ask search engines are good places to start in order to find a qualified and experienced appraiser.
If you need a loan, you must contact your lender directly. Under federal regulations, the lender must order the appraisal directly from the appraiser. As a borrower, you can request a copy of the appraisal upon completion of the report and after it is delivered to the lender.
What should I expect from an appraiser?
The four questions that clients usually ask are:
Who we are and what we can do for you today
Steven Adams has 30+ years of experience in appraising all property types in the Central Texas market and is qualified and confident to provide you with an accurate valuation of your property. Fees vary depending upon the complexity of the property and the type of report format required.
Please contact this office for a fee quote and delivery schedule. We will email the final report as a .pdf digital file to our client upon completion. If the client needs a bound report, we can provide a hard copy in addition to the digital file.
We appreciate your business and look forward to serving your appraisal needs.