PVA Choosing a Commercial Appraiser

Choosing a Commercial Appraiser

SINCE EACH STATE has regulation of its appraisers, one might think by contracting a State Certified Appraiser that one is getting a suitable appraiser. In legal matters, one would not hire a fledgling criminal attorney to solve complex corporate law problems. Conversely, it would be imprudent to hire the the most astute Wall Street attorney to fight a disputed parking ticket. Although all practicing attorneys are state licensed, they are not all equally skilled. The same holds true for commercial real estate appraisers.

In a recent newsletter, a state appraisal licensing board chairman lamented: "Our meetings have become ... more difficult. The majority of our time is being taken up with complaints against appraisers."

Hire a State Certified General Appraiser; don't stop there, however. State certification shows only that an appraiser has met the minimum criteria. Additional criteria also should be considered. Seven factors to consider follow:

Choose the level of expertise you desire:

Good: 1. State Certified General Appraiser; 2. Three Years Commercial Appraisal Experience; 3. Undergraduate Degree or Equivalent; 4. Candidate for a National Appraisal Designation; 5. Experience with the Market Area of the Property; 6. Experience with the Property Type Under Appraisal; 7. Experience with the Required Appraisal Format and Standards

Better: 1. State Certified General Appraiser; 2. Five Years Commercial Appraisal Experience; 3. Relevant Undergraduate Degree in R.E./Economics/Business; 4. National Commercial Appraisal Designation; 5. Market Area of the Subject Property is the Major Focus of Practice; 6. Property Type Under Appraisal is the Major Focus of the Practice; 7. Required Appraisal Format and Standards are the Major Focus of the Practice

Best: 1. State Certified General Appraiser; 2. Seven Years Commercial Appraisal Experience; 3. Relevant Graduate-Level Coursework or Degree; 4. National Commercial Appraisal Designation; 5. Exclusive Practice in the Market Area of the Subject Property; 6. Exclusive Practice of the Property Type Under Appraisal; 7. Exclusive Practice with the Required Appraisal Format and Standards

When selecting an appraiser(s), investigate before you invest. The time spent will reduce the possibility of future disappointment.

Steve
Stephen Traub, ASA

For a free printed copy of Choosing a Commercial Appraiser: E-mail to: straub@shore.net or contact Stephen Traub, ASA, at Property Valuation Advisors, 63 Hill St., Newburyport, MA 01950, or call 978-462-4347.

Stephen Traub, ASA, is chief commercial appraiser for Property Valuation Advisors, Newburyport, MA. He is a certified general appraiser in NH, ME and MA.