Commercial property appraisal is a procedure that involves a trained appraiser who looks at different details about a certain property and then determines what its market value might be as indicated by its different features and the place where it is located, with the final report being handed to the party that ordered the appraisal. Real estate property valuation can happen in many circumstances and it can be done by different people who are obligated under the law of your country to be able to order for the process to be done even if the property belongs to you. One situation where a third party can order for the appraisal of your property is when you have a loan that you failed to pay and the loaner is looking to get his money back where he can establish the value of your property through his appraiser and then you can work out a way where you can sell it and pay him or him can take it and give you back some money in case it is expensive. Another situation is when you want to sell a real estate property to a buyer who will first want to establish its price without relying on your report, and he is allowed to bring his appraiser who will determine the market value of the property and make an appraisal report. There are situations where the individual who ordered for your property’s valuation can decide to share the final report with you, but it is impossible for the appraiser to give it to you because he respects the will of his clients and he only shows the report to the person who hired him to do the appraisal.
There are steps that are followed by the appraiser when you hire him to come and establish the price of your property. The first thing that is done is to do a thorough inspection of the property to determine a few factors including the public ownership history, the demographic outline of the location where it lies as well as the recent sales of other properties which are similar to the one you have. After investigating characteristics about that property, your appraiser will request for any other important information you can provide him with and it includes the tax statements related to that property as well as the income statements showing how much money you make from that property.
The last step for the appraiser is to write a document where he will show the value of your property with an explanation about why it is worth that money. The appraiser can also indicate the retrospective cost of the property which is what it cost in the past days or even the prospective value that shows what your property will be costing in future depending on different trends being considered.