As a commercial property owner, regular appraisals can be crucial in maintaining the value of your property. An appraisal can provide valuable insights into the property’s market value, helping you make informed decisions about refinancing, selling, or leasing.
But how often should you get your commercial property appraised? In this blog, we’ll explore the importance of regular appraisals and provide guidance on when to schedule one.
Annual Appraisals
Annual appraisals are recommended for commercial properties that are financed with a mortgage. This is because lenders typically require annual appraisals to ensure the property’s value is still aligned with the loan amount. Annual appraisals can also help you identify any potential issues with the property’s value and make adjustments accordingly.
Every 3-5 Years
For commercial properties that are not financed with a mortgage, it’s recommended to get an appraisal every 3-5 years. This frequency can help you stay on top of market trends and ensure your property’s value is accurately reflected.
When There’s a Change in Property Status
If there’s a change in your property’s status, such as a renovation, expansion, or change in ownership, it’s a good idea to get an appraisal. This can help you determine the new market value of your property and adjust your financial strategies accordingly.
When There’s a Change in Market Conditions
If there’s a significant change in the local market, such as a shift in demand or a change in zoning laws, it may be a good idea to get an appraisal. This can help you understand how the market change may impact your property’s value and make informed decisions about your investment.
Conclusion
Regular appraisals can be a valuable tool for commercial property owners, providing insights into the property’s market value and helping you make informed decisions about your investment. Depending on your property’s financing status, market conditions, and changes in property status, annual, 3-5 year, or as-needed appraisals may be the best approach. By staying on top of your property’s value, you can ensure your investment remains strong and profitable.