The importance of an experienced appraiser
From an investor’s perspective, an accurate appraisal is crucial for any multifamily investment.
The process of developing an adequate multi-family property appraisal is unique because every rental apartment building will differ in location, interior & exterior renovations, parking availability, suite mix, layout and sizes, zoning & re-development potential.
All these factors will combine to result in differing appraised values of the asset.
It is important for an appraiser to clearly & concisely communicate what they know about the current market and the specific multi-family property they are assessing.
Experienced appraisers mirror the actions of buyers and sellers in the market in order to give their opinion of the most probable selling price for the multi-family property.
To support their market value, an appraiser should provide comparable sales, while also emphasizing a realistic range for the capitalization rate.
In addition to getting an unbiased opinion of value, the appraisal will ultimately dictate the financing one may achieve in a transaction, as financial institutions rely on appraisals to base their loans on.