Why Commercial Appraisal Fees Are High
The complete appraisal of one’s property is something that land owners or property owners need to understand thoroughly. Usually they have questions pertaining to the expenses they spend in for the appraisal of their property and why it would take several weeks before an appraiser can finish the job at hand. 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. That is why a person who is in need of appraisal services, commercial or residential need to learn what those requirements are.
Not all people know the ins and outs in appraisal process for commercial establishments that is why you need to pay for the time and expert knowledge that appraisers have. Most of the time, a common appraisal for a commercial establishment would take around 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. 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. 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 appraisal fees are not affected by the latter, what are then the things that affect them? There are only four things that can affect the appraisal rate, first is the intricacy of the project, the format of the report, data availability 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. This will then take longer period of time before the appraiser can finish and the fee will be higher as well. That is just one aspect that affects the appraisal time and rate more so if you are still in search for a reliable appraiser to deal with you can go for Edmonton commercial appraisal services. With the advent on internet you can surely find Edmonton residential appraisers and other services they offer.