If you are looking to get the highest appraisal on your commercial property, there are a few things you can do to help ensure an excellent valuation. Along with keeping your property well-maintained, it is important to understand the various behind-the-scenes factors that have a significant impact on each property assessment. Read on to discover a few tips and guidelines on how property owners, investors and developers can best prepare their commercial properties for appraisal to ensure accurate valuations.
5 Tips to Prepare for a Successful Commercial Appraisal
1. Gather and organize information ahead of time
Remember that a physical property inspection is just one part of the appraisal process. In fact, the majority of valuations occur behind-the-scenes while appraisers investigate various property factors such as net income, comps and market history. To help expedite the process, it is helpful to have a collection of essential documents organized and ready for your appraiser at the beginning – the more information, the better. A few examples of helpful documentation include copies of all leases, lists of recent improvements made to the property and those costs, accurate statements of historical expenses, and reasoning behind any historical or anticipated changes in income and expenses.
2. Specify all property upgrades and income streams
Both the property’s condition and income it produces will be highly influential factors in an appraiser’s opinion of the real estate’s value. That is why it is crucial to let your appraiser know what you have done to improve the physical building and its ability to generate revenue.
It helps to provide a detailed list of physical improvements, such as repairs or additions you made after purchasing the building, along with explanations of why certain upgrades make the property more attractive to buyers and market competitive. In addition, detailing various revenue streams – such as parking, services and other types of fees – and how they have increased since the initial property purchase could also lead to a higher valuation from your appraiser.
3. Define changes to the local market
The phrase “location is everything” is just as true for commercial properties as it is for residential real estate. The market surrounding your commercial property will ultimately affect how your property performs within its property class, income potential and assessed value. Therefore, be prepared to share how the characteristics of the neighborhood such as traffic exposure and proximity to adjoining uses affect your specific business including if where your real estate is located has improved recently.
4. Be straightforward with your appraiser
As previously mentioned, you can expect to be asked to provide an array of additional documents that identify net income, property health and the market during a commercial appraisal. If so, it is important to never withhold or falsify any information. Even if it may not be immediately clear why certain information is needed, you should always do your best to promptly provide whatever is asked from you by your appraiser to ensure a successful outcome.
5. Choose the right appraiser
Hiring the right appraisal professional is one of the best ways to ensure an accurate and efficient outcome. A good appraiser will have experience in your market and property type, be upfront with associated fees, explain the process with clear timelines, and even provide references. With over 40 years of experience serving Jacksonville, Moody Williams is able to provide our clients with the highest level of service for their commercial real estate appraisals.
Professional Commercial Real Estate Appraisals in Jacksonville
Reliable commercial property appraisals and well-researched real estate market analyses are critical for evaluating investments, securing loans, closing sales, reporting to stakeholders, and understanding tax scenarios. At Moody Williams Appraisal Group, you can trust our highly experienced commercial real estate property appraisers to provide unbiased, well-researched appraisals and valuations for all types of commercial properties in Jacksonville. Contact our office today to learn more.