When it comes to commercial property, there are a couple of different reports you could consider in order to get the information you want about the property’s value: the full narrative (self-contained) appraisal report and the Limited Commercial/Industrial/land Appraisal and Summary Report.
Full Narrative Report
A full narrative essentially gives you the complete “ins and outs” of the commercial property you are considering. More detailed than a limited report – which you might assume because of the name – it allows you to get an appraisal report for commercial property including subdivisions. A full narrative report may also be called for when court action is being contemplated, such as when a tax appeal is being contemplated, when it’s part of the division of property in a divorce, or when condemnation of the property is being considered.
Thorough interior and exterior inspections are required because of the nature of the report, and you can expect on average the inspection portion to take from one to six hours, which is largely dependent on the size of the commercial property being inspected. The appraiser also has to consider the complexity of the building when determining the timeline involved in the inspection process. It’s also important to realize that the appraiser will be taking thorough pictures of the interior and exterior of the building in order to properly represent the condition of the building.
A Full Narrative Report will generally have the following components:
The next post will be about the Limited Commercial/Industrial/land Appraisal and Summary Report
The essential differences between commercial appraisal report types is important knowledge to help you get the information you want for the purpose the appraisal and report are designed for.