Real property appraisal, land valuation or commercial property valuation is basically the process of formulating an assessment of a property’s worth, in terms of its commercial viability. Real property purchases often require valuations since they occur infrequently, and each property is different, unlike stock, which is sold on a daily basis and are similar. It is imperative that the owner be informed of any potential costs associated with their investment, because, when a piece of land is sold, the buyer has already paid a commission to a real estate agent for their services, so their agent’s assessment of the value of the land is not really a fair representation of the property’s current worth. Therefore, the appraiser should always keep in mind the fact that the appraiser is not working for the seller, but the person selling the property, and that the value that the seller offers is based on the commission that has been paid to the real estate agent for their services. Check House Valuations.
There are two main types of commercial property appraisers. One is the independent appraiser who is hired by an individual or corporation to perform this task. The other type of appraisal is that of the appraiser that is hired by a bank to perform this task. In most cases the appraiser is an individual who has obtained a degree in a business or a science, and then will have a masters in business or science, along with a substantial amount of experience, to be able to perform this task. However, there are also some real estate appraisers who are self-employed and do not have any qualifications, other than that of an appreciation of the law, in terms of real estate valuation.
This process is used extensively in assessing commercial properties, because commercial properties tend to be more profitable than residential properties. Because of this, it is important that they be assessed and appraised, more carefully than residential properties. Commercial properties are usually used as a place to house office space or a hotel. They are also used in the production of many goods, including food, water, wood pulp, petroleum products and the like. Therefore, they are subject to all the same laws that would be applied to residential properties. When a commercial property is purchased, it needs to be evaluated in order to determine its current value and whether or not the property will be able to generate the income that it needs to stay financially viable, without causing damage to its future income potential.
Sydney Property Valuers
16/329 Pitt St, Sydney, NSW 2000
Phone No: (02) 8599 9840