In Commercial Real Estate, Always Get an MAI Certified Appraiser

The appraiser that you hire for your commercialproperty.
investments before you buy can have a greatA very widely used and accepted type of
impact on the amount of money you spend andappraiser is one that is certified by the American
your chances of getting funding from a lender.Institute of Real Estate Appraisers. They are
Most lenders will not accept just any appraiser. Ifmembers, making them M.A.I. designated. Most
you get an appraisal with an appraiser that alenders will require that you use only an MAI
lender does not accept, you have just wastedappraiser. These MAI appraisers have gone
your time and money, and you are no closer tothrough intense study, years of practice, and
getting the property you want.have had to perform under tight supervision while
In the world of commercial real estate, not allappraising many different properties.
appraisers are considered equal. It takes a certainMost MAI appraisers will not conspire with a
expertise and knowledge to correctly appraiseborrower because there is too much to lose and
commercial property, and not just anybody istoo much invested in their practice. For this
qualified. There are two types of appraisers, a feereason, most lenders will accept MAI appraisals
appraiser and a staff appraiser. A fee appraiser isregardless of whether or not they know the
generally available to the public for hire, and aappraiser personally. For the most part, lenders will
staff appraiser works for a specific lender orhave trusted appraisers that they work with all
lending firm.the time, and will require that you use only their
Let's look at what makes a qualified appraiser andappraisers. Be sure to get clarification on this issue
how they can help you purchase the propertybefore you hire an You can trust MAI appraisers
you want with as little hassle as possible.to perform an accurate evaluation of your
It is common practice for a lender to appoint theprospect property. With this appraisal, you will be
appraiser that is to appraise the property inable to get the proper amount of money loaned
question. This practice is in place because thereon the property and not come out short.
are dishonest buyers who work with certainIt is always a good idea to research your
appraisers that will inflate the property's trueappraiser and view some of the work that he or
value. This, in turn, allows the buyer to borrowshe has done in the past. The appraiser and the
more money than what a lender would normallyappraisals should be of the utmost professional
allow, thus increasing the lender's risk.quality because so much is riding on their appraisal.
Inflating a property's true market value isEven if it costs you more money, always use an
surprisingly easy because appraisals are simplyMAI appraiser to avoid problems with the lender
guesstimates of a property's true market value.and unnecessary expenditures.
They are interpretations based on the surroundingMAI appraisers are crucial to your commercial real
property and selected criteria. An appraisal can beestate investing endeavors, and can carry quite
"fixed" according to a person's interest. That isan impact on the money that can be loaned to
why the two parties must not have any prioryou. To get the money you expect from a
dealings or common interest in the subjectlender, use a MAI appraiser every time!