Do You Need A Commercial Real Estate Appraisal Or An Evaluation? - PowerPoint PPT Presentation

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Do You Need A Commercial Real Estate Appraisal Or An Evaluation?

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The two terms, property appraisal and property evaluation are two very different terms, and should not be confused when dealing with any kind of property, commercial or otherwise. The most basic way of describing the difference between the two, is to say that valuations are formal and legally binding, while an appraisal is much less formal and has no legal standing. – PowerPoint PPT presentation

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Title: Do You Need A Commercial Real Estate Appraisal Or An Evaluation?


1
Do You Need A Commercial Real Estate Appraisal Or
An Evaluation?
2
  • The two terms, property appraisal and property
    evaluation are two very different terms, and
    should not be confused when dealing with any kind
    of property, commercial or otherwise. The most
    basic way of describing the difference between
    the two, is to say that valuations are formal and
    legally binding, while an appraisal is much less
    formal and has no legal standing.

3
  • What is a property appraisal?
  • A commercial real estate agent and/or valuation
    company will use their in-depth knowledge of
    local property markets, along with research from
    recent sales in the locality, to give clients a
    price guideline that may be obtained for a
    particular property. In essence, appraisals are
    simply an educated opinion related to property
    prices they are not definitive and have no legal
    standing. Vendors will often request an appraisal
    to establish a guide towards prices in the
    current local market.

4
  • As local market knowledge is essential in
    providing appraisals that are as accurate as they
    can be, it makes sense to hire a real estate
    specialist who is based in the locality of the
    property (or properties) that you are interested
    in.

5
  • What is a property valuation?
  • Official valuations may only be carried out by
    valuers with the appropriate qualifications and
    credentials, and are necessary when a definitive
    property value is required. Obtaining a loan,
    establishing the value of a deceased estate or
    property settlement, are all issues that may
    contribute towards the reasons for needing an
    accurate valuation. There may also be occasions
    when a court has ordered that a valuation be
    carried out in order to help resolve a legal
    dispute.

6
  • Valuing commercial properties can be complicated
    and the procedure may take some time. Things that
    a valuer will take into account when providing
    valuations are

7
  • property location
  • condition of the building
  • including whether there are any structural
    faults
  • caveats or legal liabilities related to the
    property
  • zoning issues

8
  • A formal, written report will then be issued to
    the client, once the valuation has been
    completed.
  • So in conclusion, if you are looking for an
    accurate guide to the value of a commercial
    property, but you dont require all of the
    reporting and analysis that is involved when an
    appraisal is carried out, then an evaluation
    would be appropriate. These ensure that you gain
    a credible market value estimate, but at a
    fraction of the cost of an appraisal.

9
  • East Tennessee Valuation Inc. is a commercial
    real estate valuation and consulting firm based
    in Knoxville, Tennessee. Our services include
    appraisals, appraisal reviews, consulting,
    evaluations and expert witness litigation
    support. If you are looking for real estate
    appraiser in Knoxville, TN, visit us. Our
    commercial real estate consultants in Knoxville,
    TN have the knowledge, experience, technology,
    and the skills to help you make an informed
    decision.
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