Commercial real estate appraisal or valuation is the process of determining the value of a commercial real estate property by estimating the various factors associated with the property such as its location, historical significance and current market conditions. Appraisers perform this valuation which helps in the sale or purchase of the intended property as interested clients get a better idea about the real estate's worth and positioning in the market.
Commercial real estate appraiser responsibilities extend beyond these tasks as they also have to inspect the property and consult experts in various fields in order to confirm its condition and design. Most appraisers are hired by financial institutions or other private organizations; however some of them work as independent appraisers on a contractual basis. For organizations that deal with commercial ventures on a regular basis, the role played by a real estate appraiser is invaluable as it provides the base on which future decisions related to purchase and sale of the property are determined.
Responsibilities of a Commercial Real Estate Appraiser
Commercial real estate appraisers perform a number of tasks in order to carry out their daily job duties. Some of them have been given below:
A bachelor's degree in any field followed by a rigorous training in real estate appraisal to gain a state approved license is required from individuals seeking a job in this field. While they are being trained in order to procure the license, they work under other senior appraisers and receive a hands-on experience in the world of commercial real estate appraisal. They have to undergo several written examinations and earn a good review from the appraisers under whom they are working, before being awarded the license to work as a full time appraiser. The type of license required may differ from one state to another.
A commercial real estate appraiser should have a good understanding about the appraisal process related to valuation of property. They should also be good at mathematics as they have to deal with numbers as a part of their daily tasks. As they interact frequently with a number of other professionals who are involved in the appraisal work and also have to prepare long reports associated with the valuation work, they should possess good oral and written communication skills along with good interpersonal capabilities. Having basic knowledge about the construction and architectural concepts is a good quality in any real estate appraiser.
With the passage of time and increasing amount of achievements in the field, one can progress to the position of a senior commercial real estate appraiser. Some of them may also receive the responsibility of a manager with the financial institution or organization that they are working with. Some of them move on to opening their own private firms that handle legal appraisal and valuation work of different kinds of properties.
Thus, commercial real estate appraiser responsibilities involve the overall financial valuation of a commercial property by using various tasks and functions. They have to follow various legal procedures in order to carry out these responsibilities.