The true cost of failing to hire a proper AACI, or Appraisal Institute of Canada, designated appraiser can be much more than the report fee a commercial appraiser will charge in the Greater Toronto and Hamilton Area. This is the age-old debate of price versus value. Many people get hung up on price and fail to see value.
Commercial appraisers help you see through the murky water, ignore the noise, and see the true value in a commercial, income-producing property. The financial cost of engaging the services of a commercial appraiser in Hamilton and Burlington can vary significantly from one property to another, as no two properties are the same.
AACI designated appraisers have extensive experience, knowledge, and training in the specialized field of commercial real estate appraisal. Most commercial appraisers have a university degree, three years of specialized real estate education, five or more years of experience, and stringent insurance and liability requirements—and that’s before they even get to your property. Appraisers provide independent, autonomous, and unbiased opinions of value that assist an abundance of users in their decision-making.
The appraisal cost can vary significantly from one property to another and depends on the scope of work. In Hamilton and Burlington, a typical commercial appraisal of an income-producing property for mortgage financing purposes can range from $2,000 to $5,000; however, this price is highly dependent upon the subject property, its location, use, and the purpose of the appraisal report. Appraisal reports can easily cost in excess of $10,000, and appraisers are often tasked with more complex appraisal assignments involving feasibility studies, portfolio analysis, financial forecasting, and other consulting projects.
We often get inquiries from owners who are focused on just price; however, a proper appraisal involves an extensive investigation into the subject property’s condition from a physical and financial perspective. Exceptional commercial appraisers provide a comprehensive overview of the property and provide a report that the owner can refer to years beyond the effective date of the report. The appraiser will provide an overview of the property’s physical characteristics, its income-producing capabilities, and extensive benchmarking data used to determine the property’s financial performance.
A commercial appraisal does not need to be just a document that you turn over to the bank and then forget about; it can, and should be, used as a reference for your property that summarizes the site and its improvements, the condition of those assets, and their capacity to generate net income. For an appraisal that goes beyond your typical number crunching exercise and does more than just pushes paper, please contact us. We work towards betterment.