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 estimation Institute, a trade society 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 estimation 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 estimation Institutes class offerings, and holds this designation. However, it's often much easier to refer to the estimation itself as being certified than to hold to technicalities.

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An appraiser who has earned the Mai designation is noteworthy to and experienced in the doing of both residential and commercial properties. Many other appraisers are only noteworthy for residential property. At one point, lenders were likely to require that an estimation be done by an Mai certified appraiser, or a member of an additional one trade organization. However, this has been unlawful since 1989, as there is not federal regulation of these organizations. Still, certified appraisals can growth the chances of a favorable lending situation, since the lender will feel more comfortable. An Mai certified estimation offers lenders a reliability that allows them to be determined in their investment.

A commercial estimation by an Mai certified appraiser can contain many things. Generally, it will contribute an overview of the community, neighborhood, and general area in which the asset is situated, as well as a detailed article of the site and all structure it contains. Zoning analysis, an determination of the top and best use for the property, and an in depth argument of the property's value from any separate approaches will also be included. The appraiser may also make a suggestion of which valuation is most standard 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 estimation firm assumes liability if the estimation is too high, and the asset cannot be sold for the price they recommend. The firm also assumes liability if the price is too low and the asset is sold for too slight money. Because of this, appraisers have a vested interest in production 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 settled on higher new sales, and in a falling market, that emphasis will go to lower new sales. A good appraiser is interested in giving clients the most literal, estimation possible.

What Is An Mai Appraisal?