The Tribune

Looking for the best appraiser for a residence or commercial property? Antoine Adderley spells out what qualities clients should look for.

Nothing is more solid than the ground you stand on or the residence you call home. So you might think that given its fixed physical presence, value would remain stable and steady.

After all, it’s blocks and mortar, or solid ground. The irony is that values of even the most hardy of structures can be anything but stable and, in fact, are more likely to be influenced by external factors than by anything you do.

Value can plummet following announcement of a major highway to be built nearby. Or it may slide slowly because of a gradual, almost imperceptible at first, deterioration of surrounding structures. Similarly, property values can skyrocket with the groundbreaking of a luxury development or news of an upscale amenity in the nearby area.

Often, value is based on the property itself, particularly in the case of residential developed property. Location is by far the single greatest influencing factor for value. Other factors are determined by square footage, condition, how updated bathrooms, kitchens and flooring are, and by the presence or absence of special features including hurricane-impact windows, pool, stainless steel or other high-end appliances, generator, lighting and extras like wine cellars, jacuzzis, modern electronics or smart home.

For the most part, owners can get a sense of the value of their property. They base their assumptions on what they paid initially, the cost of improvements and calculate what neighbouring properties have sold for. However, assessing the value of a property is the job of an appraiser who has professional training, the benefit of experience and knows current market factors like the lending environment, zoning, future developments and highest and best use.

Appraisals are necessary for far more significant reasons than satisfying owner curiosity. Appraisals are important whether considering purchasing, selling, insuring, lending, settling divorces and property taxes.

Whether you are looking to put your residence or commercial property on the market, purchase a home, trying to calculate the fair market value for Real Property Tax, assessing the equity you have built up or considering applying for a loan, knowing the value of your property is a must. Understanding the need and value of appraisal services is the first step. Selecting the right appraiser is the second part of the process.

In selecting an appraiser, consider asking the following questions. Which financial institutions accept your reports? Does the government of the Bahamas accept your reports? How many years of experience do you have? Are you a member of the Bahamas Real Estate Association (BREA)? What is the average turnaround approval time for financing following one of your appraisals? Are you willing to do the report at a time that is convenient for me even if it is not during regular 9am to 5pm work hours or at weekends?

The appraiser should be comfortable with these questions and welcome them. All appraisals are confidential reports and belong to the person or institution that pays for them.

Completing the appraisal should include the ability to meet deadlines for financial institutions. Financial institutions generally have a turnaround time of seven days to advise if a loan is approved. A hard-working, qualified appraiser and agent will get the report done on time.

The appraisal field, once the purview of just a few, has grown almost exponentially in the past few years. When investigating which appraiser would be best for your job, do the same you would do if selecting a doctor or builder - ask friends and colleagues whose opinions you trust for a reference. Consider the various firms’ level of expertise and the range of clientele.

Choose carefully to select the right appraiser and the appraisal you get will be the right one the first time.

Antoine Adderley is a broker and appraiser with Mario Carey Realty

NEXT WEEK: Ashley Brown on real estate investment