SouthPointe Solutions LLC has been providing commercial real estate appraisals in the Dallas Fort Worth Metroplex since 1993.
Types of Commercial Property Appraisals
APPRASER – REVIEWER: An appraisal review should not be confused with a second opinion of value as an appraisal review does not lead to an alternate value conclusion. A reviewer is a neutral agent who renders a written opinion to the client as to accept, reject or modify the conclusions contained in the original report. The qualification of an appraisal reviewer includes appropriate education (including income capitalization courses), training, and experience at the same level of skill and complexity or higher than the original appraiser who accepted the assignment. There are two basic types of review procedures; desk reviews and field reviews. DESK REVIEW APPRAISAL REPORT – Here the appraiser is ethically bound and responsible to develop an objective value conclusion to all parties with a vested interest in the proposed transaction such as the buyer, the seller, borrowers, lenders, brokers and agents. Besides the value conclusion, the value opinion and the recommendations of the appraiser reviewer, each review report must contain the following items:
- Identification of the appraiser;
- Specification of the property rights being appraised;
- Purpose and date of appraisal;
- Defined value;
- Statement of the qualifying conditions and assumptions upon which the appraisal is based;
- Date, signed and certified.
FIELD REVIEW APPRAISAL REPORT – A field inspection review is rare and is considered a quality control appraisal procedure. Also, the field review must contain the same valuation elements of the desktop review. A WRITTEN APPRASAL REPORT: Designed for maximum communication with our clients, our written appraisal reports are organized in a manner which readily discloses the property, the essential analysis of the realty or property, and a value conclusion using all three approaches to value. There are two types of written appraisal reports. We provide both types of reports to our clients; the narrative report and the form.
Narrative Appraisal Reports consists of through research, logical sequence, organized data, and sound reasoning. Delivered by either hard or soft copy, the turn-around time for a commercial narrative appraisal report is usually 10 – 12 business days. Each appraisal is carefully framed with pertinent market data and sales data from many resource data bases for a crystal clear expression of the client property valuation. In the narrative report, we provide each client with detailed information that is beneficial for many different reference uses about the property.
Form Appraisal Reports are limited, form reports sometimes referred to, in the appraisal industry, as a summary appraisal report or a restricted use appraisal report. These types of reports are used mainly when the appraiser and client conclude they only need specific documentation of an already perceived valuation. For the appraiser, the process is the same as a full narrative appraisal report yet the client only wants a minimized brief report for the a file.
MARKET AND REAL ESTATE FEASIBILITY STUDY The difference between an appraisal and a real estate feasibility study is encapsulated by the following comparison. While the developed appraisal answers the question, “What is my property worth?” The market feasibility study measures expected market response. The major question answered by a market feasibility study is “If I build/buy it, will they come?” As a Certified General Appraiser, in a narrative report, I will include a summary of the market in the analysis of the highest and best use or in the income approach to value. These two sections always have a detailed examination of the market of the type and use of the subject property. Our skilled appraisal analysis will research and develop all the necessary market information from a plethora of heavy hitting database giants such as Marcus & Millchap, LoopNet, Co-Star, Marshall & Swift and DFW MLS.
SouthPointe Solutions LLC
The field of our experience and expertise covers a wide birth of different types of structures for appraising and reason why clients like you would want your property appraised. Whether you want to refinance, or divorce settlement, probate or just for your own valuation, we can provide this valuable service.