In-Depth Explanation Why Commercial Appraisal Rates Are High
A number of people are not aware on the process that commercial appraisers need to undergo in assessing the right market value of their property. The most common questions that they have in mind is that why commercial appraisal rates are high and why it would take some time before the appraiser can finish their work. In this article, the main reasons why such things happen is explained and hopefully property owners will be enlightened.
The first thing that you need to learn is the laws governing the appraisers’ work and in the process of appraising properties. The incident in early 1990s became the reason why laws regarding real estate appraisals become tight and very strict. With the information at hand one of the laws imposed by the government is a necessity for the appraisers and the insurance companies related to such to be licensed.
The laws implemented by the government created a more rigid appraisal standards for appraisal practices thereby allowing local licensing bodies to get affiliated with licensed appraisers. Needless to say the standards become so intricate which is one of the reasons why completing the entire process is time-consuming and difficult. That is why a person who is in need of appraisal services, commercial or residential need to learn what those requirements are.
When looking for a commercial appraisal services what you are actually paying is the time and expert knowledge of appraisers. Typical appraisal time would approximately last from 30 hours to 60 hours. Compared to a 14-unit apartment building a 7-unit building would take lesser time for the appraisal rate considering the report made is in a summary narrative format. As for a 12,000 square foot industrial plant would be completely appraised at a similar time frame for a 24,000 square foot industrial plant. You must know that appraisal fees are not entirely reliant on the property value and the market value of a certain property.
In other words, what are the factors that affect the appraisal rates? 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. How complex the property is – If the property is complex in nature then more likely appraisers need to spend more time investigating the entire property. The longer the time it takes to finish the entire appraisal process then you can expect for a higher price to pay. 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. They have also Edmonton residential appraisers so you can also check it out.