Information Requested for a Commercial Real Estate Appraisal

Appraisal reports need to contain and document important information for the client to make an informed decision. Much of this content is legally required by regulations and client documentary standards.

The following general information list would be helpful and/or necessary in order for a commercial appraiser to complete their work properly. When seeking a competitive bid from a qualified commercial appraiser, let them know what information (examples listed below) that you have assembled and can/will provide them directly. This will help reduce uncertainties as to who and where such information would need to be gathered and how much time it may save. This, in turn, should translate into a quote for the most cost effective and timely delivery service.

The items below may only be a partial listing of the information that may be required to complete a given assignment. Should any of this material be too voluminous to copy, tell the appraiser he/she can borrow it and return to you upon completion of the appraisal assignment.

• Copy of the legal (deed) description on the property to be appraised (Title Insurance Policy preferred);
• Copy of the Property Insurance Binder to document the actual expense and coverage limits, if applicable;
• Copy or loan of Site/Survey Plan for the property, if available;
• Copy or loan of Building/Structural Improvement Plans (floor plans, elevations, mechanicals), if available;
• Copy of Construction and/or Capital Improvement Cost details, if applicable;
• Copies of all arms length leases, option terms, letters of intent, rent roll on the property (if leased fee);
• Detailed Line Item Income & Expense History for the property for the last three to five years (if applicable);
• List of Personal Property with Item-Age-Cost Basis (e.g. depreciation schedule), if applicable;
• Copy of all land use permits and/or use restrictions which may affect the property (if any);
• Leads on any comparable sales, rental, land data that you may know of and/or believe should be considered;

It is also a good idea to ask for the proposal to be in writing with a clearly defined scope of work, cost and delivery date. If/when acceptable, put the formal engagement in writing so that you have a binding contract.

Last but not least, make sure you check for professional references to ensure that you are hiring a qualified appraiser competent to appraise your property type and in your market area. The State of Maine Board of Real Estate Appraisers maintains the master license/certification registry and disciplinary actions taken (if any). You can contact the Maine Board at 207-624-8522 or at their website at www.state.me.us/pfr/olr/categories/cat37.htm There are also professional trade organizations like the Maine Chapter of the Appraisal Institute to call upon for referrals if needed. You can reach them at 207-741-9012 or at the chapter website at www.maineai.com.