Why Do I Need an Appraisal?

Why Do I Need an Appraisal for Commercial Property?

An appraisal, at its root, is about providing accurate valuation information to help people make smart decisions.

Anyone who has bought or sold a commercial property knows that obtaining an appraisal is an important part of the process. However, there are other times where a professional property appraisal can benefit a business. Whether you are estate planning, buying, selling, renting out or simply paying taxes on real estate, a thorough appraisal by a General Certified Appraiser can save you money.

Real Estate Appraisals Reduce Risk

When an appraisal expert performs an analysis, it’s all about limiting the risk for all parties involved. These analyses work to identify as many factors as possible that may affect the value of a building or piece of property. Some factors are straight forward, such as the type, size, and condition of the structure or property and any unusual features or equipment. Others are more subjective, such as fitness for a particular use.
A professional analyst knows how to identify and quantify these factors and the ways they affect the valuation. A thorough appraisal uncovers all of the relevant information, and works to eliminate surprises and unforeseen costs. When these issues are identified, buyers and sellers can set a fair price based on facts and expert opinions.

Reduce Taxes with an Accurate Appraisal

In Texas and many other states, local tax authorities determine taxes based upon the value of the property. In large counties, the taxing authority is responsible for setting the value for a huge number of commercial and residential properties.
Local assessors determine taxes by using a standard formula applied to the property’s established fair market value. In Texas, this value is determined by a chief appraiser in each county’s appraisal district. For land that is used for agricultural or timberland purposes, the tax rate may be determined by the value of what is produced on the property.
However, what the assessor considers fair market value may differ significantly from what the property would sell for at any given time. Changes in the land, damage to structures, or development of surrounding properties can all affect the selling price. When a property owner disagrees with the local government’s assessment, hiring an experienced property analyst can assist with resolving the dispute.

Make Smart Decisions with a Property Analysis

No matter what type of property is involved, a thorough appraisal gives you the information you need to make smart decisions. Contact Paramount Property Analysts today to make an appointment to speak with our experienced team about your commercial, rural or investment property.