There are often many reasons why it’s valuable for business owners to get a commercial appraisal, but there are some important things to know before going through the process. One of the big ones? How long it takes to get a commercial appraisal.
We break down the answer to that and offer 4 other pieces of info that are helpful to know before getting a commercial appraisal done.
Know What You’re Getting: What Is a Commercial Appraisal?
Also referred to as a “property valuation,” a commercial real estate appraisal is the process of estimating the value of a property for a specific purpose. In this case “value” most commonly means market value.
Commercial appraisals aren’t actually limited to being done on just one kind of building, they are done on everything from strata office units to industrial buildings and everything in between.
How Long Does It Take to Get a Commercial Appraisal
Unlike residential appraisals, commercial real estate appraisals often take a few weeks longer. This is due to the increased complexity of commercial real estate properties and the subjective nature of the appraisal.
Because commercial real estate varies dramatically in size and scope, tying an exact number to the time it takes to complete a commercial appraisal isn’t doable.
There’s More to It Than Just the Inspection
The physical inspection of the property is just the beginning of an appraisal—it’s by no means the only part of the process. The final appraisal report itself can actually be up to 100 pages long in some cases.
Again, depending on the size and complexity of the commercial location, the inspection could take anything from under an hour to a good chunk of the day.
Appraisals Legally Need to Be Honest
Because appraisers may need to represent the true worth of your property in court in some cases, it’s vital that you be honest with your appraiser regarding the facts of your property. Your credibility could be at risk if you misrepresent facts.
Speaking of facts and information, appraisers will need sensitive information from you like income tax statements, blueprints, and property tax bills. Don’t be alarmed, any information or documentation that an appraiser uses is considered strictly confidential and appraisers are not at liberty to divulge any of this information.
Appraisal Reports Are Confidential
In addition to the confidentiality of commercial property documentation being upheld, you should also know that your appraisal report itself is also confidential. Appraisers are only allowed to share the report with the intended user who requested it unless otherwise indicated.
For example, if a money-lending institution requests an appraisal report of your property, you would not be privy to the results unless they gave you express permission for access.
Overall, commercial real estate appraisals provide valuable insight into the worth of your property and are immensely useful for business owners.
