In commercial real estate world, not every appraiser is believed to be equal. It takes some knowledge and expertise to properly appraise saleable property, and everybody is not just qualified. There are two categories of appraisers, a staff appraiser, and a fee appraiser. A staff appraiser works for a particular lender or lending firm, on the other hand, a fee appraiser is normally available for hire by the public.

The appraiser that you hire for your commercial investments before you acquire can have a huge influence on the amount of money you spend and your possibilities of getting finance from a lender. Many lenders will not just agree with any appraiser. So, if you get an appraisal with an appraiser that a lender does not accept, you have just wasted your time and money, and you are no closer to getting the property you want.

 Let’s look at what makes a qualified appraiser, and who it is you want to hire to evaluate your potential investment.

 It is common practice for a lender to appoint the appraiser that is to appraise the property in question. This practice is in place because there are dishonest buyers who work with certain appraisers that will inflate the property’s true value. This, consecutively, lets the buyer borrow more money than what a lender would usually agree, thereby increasing the lender’s risk.

Increasing property’s true market value is very easy because appraisals are just estimators of a property’s true market value. They are understandings based on the nearby property and selected criteria. An appraisal can be “fixed” according to an individual’s interest. That is the reason two parties must not have any dealings before or shared interest in the subject property.

A very widely used and accepted type of appraiser is one that is certified by the American Institute of Real Estate Appraisers. They are members, making them M.A.I. designated. Most lenders will need that you use only an MAI appraiser. These MAI appraisers have gone through thorough study, many years of practice, and have had to carry out their duty under strict supervision while appraising several different properties.

Many MAI appraisers will not collude with a borrower since there is too much to lose and too much spent in their training. This is why; most lenders will agree MAI appraisals irrespective of whether or not they know the appraiser personally. For the most part, lenders will have trusted appraisers that they always work with, and will need that you only use their appraisers. Ensure to get an explanation on this subject before you get an appraiser because you do not want to pay for two.

MAI appraisal is more expensive than a non-MAI appraisal due to the added expertise and experience of the appraiser. Actually, the cost for a single appraisal can be $2,000 to $5,000, and two to three times the value of a fee appraiser. Be sure to include this in your total cost of purchasing the property so you are prepared to cover the cost.

If you have been in the commercial real estate business for a while, you may have a few lenders and appraisers that you work with often. They may even be considered as part of your team. This can greatly increase your productivity because you have professionals at your fingertips to get many properties handled quickly, if necessary.

MAI appraisers can be trusted to carry out an exact appraisal of your prospect property. With this appraisal, you will be able to get the right amount of money loan on the property and not come out short.

It is always a great idea to study your appraiser and look at some of the work that he or she has performed in the past. The appraiser and the appraisals should be of highest professional quality because so many are relying on their appraisal. Even though it costs you more money, constantly use an MAI appraiser to avoid problems with the lender and excessive expenditures.