How to Be Commercial Appraiser - Job Description, Skills, and Interview Questions

May 25, 2023 / 6 Minutes Read / By Albert

How to Become

Professional Organizations

FAQ

Links

Commercial appraisals are essential to the real estate industry, as they provide an accurate assessment of a commercial property's value, which can help inform important decisions regarding the purchase, sale, leasing, or financing of a commercial property. The appraisal process is conducted by a qualified and experienced appraiser, who takes into account various factors such as the location and condition of the property, the current market trends, and the property's historical performance. The resulting appraisal report provides a detailed analysis of the property's worth, helping to ensure that all parties involved are making informed decisions that are in their best interests. Ultimately, the use of a commercial appraiser helps to protect the interests of both buyers and sellers in the real estate industry.

Steps How to Become

Obtain a Bachelor's degree. In order to become a commercial appraiser, you must complete a bachelor's degree in real estate, finance, economics, accounting or a related field. You may also benefit from completing an appraisal course or program at an accredited college or university.
Obtain Appraiser Licensing. Each state has different licensing requirements for commercial appraisers. Most states require applicants to pass both a written and practical exam and to have a minimum of two years of experience as an appraiser.
Obtain Certification. To become a certified commercial appraiser, you must complete the required coursework and pass the certification exam administered by the Appraisal Institute or the International Association of Assessing Officers.
Get Professional Experience. Once you have obtained your license and certification, you must gain experience in the appraisal profession. This can be done through internships or working as an assistant to an experienced appraiser.
Join Professional Organizations. Joining professional organizations can help you network and stay up-to-date on industry news. Consider joining the Appraisal Institute or the International Association of Assessing Officers.
Maintain Your License and Certification. In order to remain a qualified commercial appraiser, you must maintain your license and certification. Most states require continuing education credits to renew your license and the Appraisal Institute and International Association of Assessing Officers require members to complete a certain amount of continuing education courses annually.

The efficiency and efficacy of commercial appraisals depend on the appraisers ability to research and analyze the current market conditions and property characteristics. An ideal commercial appraiser should have knowledge and experience in real estate markets, a sharp eye for detail, and a willingness to spend time researching. the appraiser should be able to access data from reliable sources and apply it towards a comprehensive evaluation of the property.

This will help to ensure that the appraised value is accurate and reflective of current market conditions. an ideal and efficient commercial appraiser can provide a reliable and accurate appraisal report that is useful for a variety of purposes.

You may want to check Marine Appraiser, Residential Appraiser, and Fine Arts Appraiser for alternative.

Job Description

Prepare detailed appraisals of commercial and industrial properties for tax, financing, and other purposes.
Analyze market trends, rental values, and income potential of properties.
Research zoning, deed restrictions, and other regulations that may affect properties.
Inspect properties and review reports for accuracy and completeness.
Interview property owners, tenants, and other stakeholders to obtain information.
Prepare reports to document appraisals, including photographs, descriptions, and sketches.
Compile data from various sources to develop estimates of property value.
Identify and evaluate comparable sales for use in appraisals.
Develop opinions of value based on analysis and research.
Represent clients in negotiations with lenders, government officials, and other parties.
Consult with attorneys, bankers, and other professionals to provide expert advice on real estate matters.
Advise clients throughout the process of purchasing or disposing of property.

Skills and Competencies to Have

Knowledge of accounting and financial principles
Understanding of market trends and real estate cycles
Ability to interpret and analyze financial data
Excellent written and verbal communication skills
Proficiency in using appraisal software
Knowledge of applicable regulations and laws
Ability to research and verify data
Attention to detail and accuracy
Ability to work independently and collaboratively
Problem-solving skills
Time management and organizational skills
Professionalism and strong work ethic

Having an in-depth knowledge and understanding of the commercial real estate market is essential for becoming a successful commercial appraiser. Having a comprehensive understanding of the local market, its trends, and the factors that influence the economy is crucial in order to accurately assess the value of commercial properties. In addition, having a keen eye for detail and strong analytical skills are also necessary to accurately evaluate and compare different properties in order to arrive at an accurate valuation.

Furthermore, strong communication skills are also essential to effectively communicate the appraised value to clients, while being ethical and professional at all times. these skills are essential for any commercial appraiser to be successful in the industry.

Land Appraiser, Logging Equipment Appraiser, and Precious Stones Appraiser are related jobs you may like.

Frequent Interview Questions

What experience do you have in commercial appraisal?
What qualifications do you have for commercial appraisal?
How have you kept up with the changing regulations and laws in commercial appraisal?
What methods do you use to determine a property's value?
Describe your process for conducting a commercial appraisal.
How do you work with clients to ensure the best results?
Tell me about a time when you had to handle a difficult appraisal situation.
How do you ensure accuracy and precision when appraising commercial properties?
What do you find most rewarding about commercial appraisal?
What strategies do you use to stay current in the commercial appraisal field?

Common Tools in Industry

Computer-assisted Mass Appraisal Software. This software allows appraisers to quickly and accurately create mass appraisals of real estate properties. (eg: RIOsoft)
Statistical Analysis Software. Statistical analysis software helps appraisers analyze data and trends to make more reliable appraisals. (eg: SPSS)
Geographic Information System (GIS). GIS software helps appraisers better understand the geographic area of the property being appraised. (eg: QGIS)
Real Estate Database Software. Database software helps appraisers access and store data related to properties such as sale prices, property descriptions, and photos. (eg: RealPage)
Accounting Software. Appraisers use accounting software to ensure they are accurately tracking and recording the data they use for appraisals. (eg: QuickBooks)

Professional Organizations to Know

Appraisal Institute
American Society of Farm Managers and Rural Appraisers
National Association of Independent Fee Appraisers
The International Right of Way Association
The Appraisal Foundation
The American Society of Appraisers
The Counselors of Real Estate
The Royal Institution of Chartered Surveyors
The National Association of Realtors
The Institute of Real Estate Management

We also have Business Appraiser, Aircraft Appraiser, and Equipment Appraiser jobs reports.

Common Important Terms

Market Value. The most probable price that a property would bring in an open and competitive market.
Fair Market Value. The price at which a buyer and seller, both having reasonable knowledge of the relevant facts, would agree on in an arms length transaction.
Highest and Best Use. The use of a property that is physically possible, legally permissible, financially feasible, and that results in the highest value for the property.
Appraisal Report. A document prepared by an appraiser that sets forth an opinion of value for a specific property.
Appraisal Review. The process of analyzing an appraisal report to determine if it meets the standards and criteria of the Uniform Standards of Professional Appraisal Practice.
Cost Approach. One of the three approaches to value used by an appraiser to estimate the value of a property; it considers the cost to replace a structure with one of equal utility.
Comparable Sales Analysis. A technique used by appraisers to estimate the value of a property by comparing it to similar properties that have recently sold in the area.
Capitalization Rate. A rate used to convert the net income of a property into its estimated value; also known as the yield rate or return on investment (ROI).
Income Approach. One of the three approaches to value used by appraisers; it estimates the value of a property based on its income-producing potential.
Reconciliation. The process of weighing the results from all three approaches to value and combining them into one final opinion of value.

Frequently Asked Questions

What is a Commercial Appraiser?

A Commercial Appraiser is a real estate professional who specializes in assessing the market value of commercial properties, such as office buildings, warehouses, and retail space.

What qualifications are required to become a Commercial Appraiser?

To become a Commercial Appraiser, one must have a valid real estate license and complete the necessary education and training requirements, including passing the state-administered real estate appraiser exam. In some states, additional certification may also be required.

What are the benefits of hiring a Commercial Appraiser?

Hiring a Commercial Appraiser can be beneficial for buyers and sellers of commercial properties, as they can provide an accurate assessment of the market value of the property. Additionally, they can help identify potential issues that could affect the value of the property, such as zoning regulations or environmental concerns.

What type of information does a Commercial Appraiser need to complete an appraisal?

A Commercial Appraiser will typically need to review a variety of information to complete an appraisal. This may include details about the property such as size, age, condition, features, and location. They will also examine comparable properties to help assess the market value of the property being appraised.

How much does it cost to hire a Commercial Appraiser?

The cost of hiring a Commercial Appraiser will vary depending on the complexity of the appraisal and the size of the property being appraised. Generally, fees range from $500 to $3,000 or more.

Web Resources

Commercial Property Appraiser - CAROLINA PLANNING planning.unc.edu
Commercial Appraiser Career Pathways | College of pagecareerservices.calstatela.edu
EDU Appraisers - Appraiser, University Campus, College Campus eduappraisers.com