How to Choose a Commercial Appraiser
There are lots of commercial appraisal services nowadays, but finding the right one isn’t always easy. After all, these are different companies unique in heir own ways. So how do you make a wise choice?
1. Know your purpose.
First of all, know why you need an appraiser. Dissolution of business? Expanding your business? Tax dispute? Remember that appraisers have specialties.
2. Choose someone qualified.
Under Internal Revenue Service (IRS) regulations, appraisers must be “Qualified,” meaning conducting appraisals should be their main profession, irrespective of their certification or licensure.
3. Talk to your prospects.
When you interview prospective appraisers, your main goal must be to determine when they are qualified. That means asking for their resume and checking their listed experience. Ask for recent work samples as well so you can see whether they are knowledgeable and competent enough. On top of that, ask them what methods they use for their appraisals.
It’s good to pick an appraiser who can patiently explain what they do and the concepts involved. On the other hand, pay attention to the questions they as you about the assignment. You would know the sincerity and commitment they have for the project just by the things they want you to tell them.
4. Hire an appraise who offers full disclosure.
Certainly, the appraiser should offer oal disclosure, such as having or not having done work on the subject property within the past three years, any interest they have in it and lack of knowledge on it. Overall, the appraisal should be unbiased, and full disclosure lets you determine whether you are better off choosing another appraiser.
Other Crucial Matters
Before you hire a specific commercial appraiser, you need to consider a few more things, including:
> Litigation experience
Litigation is and will always be a possibility. Choose an appraiser who will be there when you need them to give you the right support. If necessary, they should have the ability to defend their work legally.
Appraisers usually charge an hourly fee, a per item fee or a fixed rate. Avoid anyone who will charge a contingency rate, depending on the final opinion of value. This is actually against the code of ethics of the Uniform Standards of Professional Appraisal Practice (USPAP).
Finally, when requesting a bid from an appraiser, they should ask if he subject property is vacant, leased or occupied by the owner. Also, they should ask about the intended use of the appraisal. With this, they can tell he necessary proper rights for appraising and analyzing the extent of the assignment as they give you a good bid.