Why Commercial Appraisal Fees Are High
If your are a property then you must know how commercial appraisers assess the value of their property. Most of the time they question the appraisal rates and why it would take several weeks before a commercial appraiser finish their work. If you want to know how appraisal process works then reading this article is a smart move.
First things first, you need to understand the policies and laws the affect the process of appraising a certain property. The incident in early 1990s became the reason why laws regarding real estate appraisals become tight and very strict. The effect of the latter is the implementation of standardized licensing for all appraisers in several states as well as the insurance companies who have such services.
With this the appraisal licensing agencies in a certain state needs to be connected to all licensed appraisers in the area more so the standards for appraisal have changed and increased. The standards have been elevated to a higher level hence the appraisal process become so difficult. If you want to know the entire commercial and residential appraisal process then you need to understand what those prerequisites are.
When hiring the services of an appraiser what you are paying is their knowledge in this area and the time they allot in doing so. Typical appraisal time would approximately last from 30 hours to 60 hours. If the report is in summary narrative form then more likely the time it takes to appraise a 7-unit apartment establishment is less time-consuming compared to a 14-unit building. Keep in mind that the industrial plants that is 12,000 square foot in area would just finish an appraisal process similarly to a 24,000 square foot establishments. With that being said, the value of property and the market value has little thing to do with the appraisal fee of a certain building.
If the fees are not directly affected by the market value and property value, what are then the factors that affect it? Here are the 4 factors that greatly affect the appraisal rates: report format, accessibility of the data, intricacy of the project and the needed turn-around time.
1. Intricacy of the project – needless to say the more complex the project is the more the appraisers need to investigate the scope of the area. If a certain appraiser would take long in this project then you can expect to spend substantial amount of money for it. That’s just how it is after all the project is complicated more so if you have not found a credible commercial appraisal service provider to contact you can search for Edmonton commercial appraisal services. With the advent on internet you can surely find Edmonton residential appraisers and other services they offer.