16A — April 2024 — Appraisal — M id A tlantic Real Estate Journal
www.marej.com
A ppraisal By Carlo L. Batts, MAI, Rittenhouse Appraisals Make a designated real estate appraiser your ally
T here are many roles in the commercial real estate industry, each
company balance sheets. An important ally and part- ner for investors, developers,
ation and analytic skills of all types of properties. The MAI designation is the highest level
decisions. Their boots-on- the-ground approach and expertise provides firsthand perspectives and essential guidance, especially during a changing market. Having a designated real estate appraiser on the team brings a crucial role to how well and often a commercial real estate company hits their goals. Well beyond providing an impartial opinion of value for a property based on a par- ticular use, these individuals provide expertise and analysis that impact a portfolio at differ- ent times and in different ways.
These services are essential to making informed decisions on whether to invest further or sell. This information is also vital when it comes to evalu- ating property expenses. Es- pecially as markets continue to shift, keeping a close eye on current property value can be a driver in managing and limiting operating expenses. For example, is the property assessment accurate? This di- rectly impacts the real estate taxes to be paid and affects the income analysis. Do insur- ance and liability coverages accurately reflect the proper standard of value? Has a thorough and detailed OpEx analysis been conducted? Commercial real estate ap- praisers also help set transac- tion expectations. Having the opinion of an impartial, third- party that understands the major waves and nuances of a market goes a long way in set- ting effective pricing strategies and can help bridge the gap between fantasy and realty. With the right set of expec- tations based on an appraisal report, all concerned parties in the transition can negotiate with confidence. In addition, the insights a designated ap- praiser brings to the table are especially necessary in the proper handling of unique or complex properties. The vast network and im- portant referrals an appraiser can bring a team should also not be overlooked. Whether for an expected or unexpected need, experienced appraisers have navigated lots of muddy waters and have deep under- standing of local government, who to turn to when legal guidance is needed, and more. In conclusion, having an ongoing and close relationship with a designated commercial real estate appraiser is a best practice for real estate pro- fessionals. Having open and regular communication with them is crucial to gaining the most of their expertise and services, and ultimately creating the synergies and op- portunities to further build a portfolio of commercial assets. The Appraisal Institute has a searchable directory of desig- nated valuation professionals. Carlo L. Batts, MAI, is the principal of Rittenhouse Appraisals, a regional com- mercial real estate valua- tion firm based in Center City Philadelphia. MAREJ
one with its own set of re- sponsibilities. Collaboration with the nec- essary indi- viduals in this ecosystem is paramount to successful completion of
Collaboration with the necessary individuals in this ecosystem is paramount to successful completion of transactions, disposition of assets, expense management, and overall in maintaining the health of real estate assets and company balance sheets.
and operators, especially dur- ing changing market times, is a designated commercial real estate appraiser. A designated appraiser means the individ- ual has invested considerable time on improving their valu-
of professional certification an appraiser can achieve through the Appraisal Institute. These individuals serve as a frontline observer, provid- ing analysis and insights which lead to more informed
Carlo L. Batts
transactions, disposition of assets, expense management, and overall in maintaining the health of real estate assets and
TM
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