1) Q: What constitutes a good appraisal?

A: It should be accurate and well written. The data used should be current, be presented in a clear and concise manor, and should be applicable to the analysis at hand. As well, the conclusions should be well thought out, and should be consistent with information provided within the body of the report. For example, if the property is reported to be in poor condition in the report, this should be reflected in the final value estimate.

2) Q: How long does it take to write an appraisal?

A: Appraisals vary considerably depending upon the complexity of the project being appraised, and could take anywhere from two days to two months to complete. Typically, however, we look for a two to five week turnaround time for most commercial projects.

3) Q: How much does an appraisal cost?

A: At the risk of sounding evasive, it must be stressed that there are no set fees for appraisals. The assignments are simply too diverse. For example, the fee for two identical office buildings may vary significantly if a single tenant occupies one while the other has multiple tenancies in place. For a free, no-hassle quote relating specifically to your property, it is recommended that you contact us directly.

4) Q: How do you determine the value of a property?

A: This also varies to some extent depending upon the nature of the property. For example, vacant land is typically valued by way of the Direct Comparison Approach by selecting other similar properties and making pertinent adjustments to arrive an estimate of value specific to the subject. On the other hand, a fully leased office tower would be valued according to the income generating potential of the project.

If you have any other questions that do not appear here, please contact me directly at gp@irproperty.com, and I will do my best to answer them for you.