What Is An MAI Appraisal?
MAI appraisals are among the most sought after appraisals in the commercial real estate world. MAI stands for Member of the Appraisal Institute, a trade organization which monitors appraisers and holds them to a higher standard than appraisers who are merely licensed and do not belong to such an organization. There are other appraisal trade organizations active in the world of real estate. However, MAI is the best known, and thus the most popular.
Technically, there is no such thing as an “MAI appraisal.” There are only appraisals performed by an appraiser who has completed the MAI Appraisal Institutes class offerings, and holds this designation. However, it’s often much easier to refer to the appraisal itself as being certified than to hold to technicalities.
An appraiser who has earned the MAI designation is qualified to and experienced in the performance of both residential and commercial properties. Many other appraisers are only qualified for residential property. At one point, lenders were likely to require that an appraisal be done by an MAI certified appraiser, or a member of another trade organization. However, this has been unlawful since 1989, as there is not federal regulation of these organizations. Still, certified appraisals can increase the chances of a favorable lending situation, since the lender will feel more comfortable. An MAI certified appraisal offers lenders a reliability that allows them to be confident in their investment.
A commercial appraisal by an MAI certified appraiser can include many things. Generally, it will provide an overview of the community, neighborhood, and general area in which the property is situated, as well as a detailed description of the site and all buildings it contains. Zoning analysis, an analysis of the highest and best use for the property, and an in depth discussion of the property’s value from several different approaches will also be included. The appraiser may also make a recommendation of which valuation is most appropriate in his or her opinion.
Appraisers tend to be conservative in their estimates. However, this does not mean that one will receive a low appraisal. An MAI certified appraisal firm assumes liability if the appraisal is too high, and the property cannot be sold for the price they recommend. The firm also assumes liability if the price is too low and the property is sold for too little money. Because of this, appraisers have a vested interest in making sure that their estimates are in the middle range. Which sales an appraiser places the most emphasis on will depend in the type of market. In a rising market, emphasis will be placed on higher recent sales, and in a falling market, that emphasis will go to lower recent sales. A good appraiser is interested in giving clients the most accurate estimate possible.
By: Anthony Seruga
About the Author:
Anthony Seruga and Yolly Bishop of Maverick Real Estate Investments, Inc. work with builders, developers and other players in the commercial real estate industry to acquire and develop properties. They use progressive investment strategies that have proved extremely profitable. In addition to their own deals, they teach both seasoned and inexperienced investors how to be big players in the game. Visit the website for more info.
Categories: Appraisals Tags: Many Things, Real World, Residential Property
How Do Foreclosures Work?
When it comes to foreclosures there are many things that people simply do not know. Many people when buying real estate who want to make sure that they get the best deal possible think about foreclosures. However, unfortunately the different scenarios that they have in their mind are not necessarily going to be the case.
There are many different reasons for why sellers go into foreclosures however many of them are unfortunately unavoidable. Some people either get laid off, fired, or they simply quit their job not giving them the funds that they need. Other people suddenly get medical conditions that enable them to be able to do their work.
There are others who just have a whole bunch of bills that keep on accumulating that they need to pay for. Although this is not necessarily a bad situation, some people just get job transfers to another state. So I just laid out for you a few different scenarios for why people go into foreclosures but how do foreclosures work?
A foreclosure is when people do not have the money to buy a property then and there. So in order for them to buy the property they have to borrow money from a lender. However because the lender lent them money, in exchange for lending them that money the lender then holds a lien against the property and if the person borrowing the money does not make the payments required the lender can exercise lien for the property. As a result they take ownership to then sell it to get back the money that the borrower did not pay.
That is why foreclosure properties are usually well below the actual value of the property. All the bank or the lenders are really interested in is getting back the money owed to them. This is why these properties are very attractive to real estate investors.
By: Munyaradzi Chinongoza
About the Author:
If you need more information on how do foreclosures work, please visit our blog: http://foreclosure-listings-online.blogspot.com/
Categories: Foreclosures Tags: Job, Lent, Many Things
