The appraisal on a piece of commercial real estate can mean the difference between getting a good deal on the property and losing money. Therefore, it's just good business to do everything you can to help the appraiser accurately calculate what the property is really worth. Here are two things you can do to aid in the process.
Choose the Right Date of Valuation
Many people assume appraisers only determine the property's current value. While this is the most common type of evaluation, appraisers can also research and determine a property's past and future value. This can be immeasurably helpful when it comes to negotiating the price of a piece of real estate.
For example, you have an office building appraised on a Monday, but there is a mass shooting at the facility on Friday. The appraiser can produce a report that speculates the building's value in the future based on the loss of reputation caused by the event. This can help you decide if you want to follow through on the purchase or renegotiate the price with the seller to account for the expected reduction in market value.
Thus, when hiring an appraiser, be sure to establish the date you want the evaluation to be valid for (e.g. past, present, or future). You can always request more than one according to your needs, but be prepared to pay the price for the additional service.
Share Your Goals
The second thing you can do is let the appraiser know your plans for the building. The professional can then customize the appraisal to reflect the value you need for your goals. For example, if you plan to renovate the building and sell it to a potential landlord, the appraiser can let you know how much it will be worth to that future buyer. If you plan to be the landlord, the appraiser can create a report that shows the building's worth to potential renters, which can be immeasurably helpful when setting rental rates.
Additionally, it may also be a good idea to specify who will be viewing the report. The appraiser will restrict access to the valuation to only those you name, which can prevent unauthorized people from seeing information you'd rather keep private.
For more information about commercial real estate appraisals or to schedule an appraisal of a piece of property you want to buy, contact a local professional at businesses like East Coastal Appraisal Services.