When it comes to commercial real estate, MAI appraisals are a professional designation for appraisers that have to be mentioned. The reason is very simple – it sets the standards for the field. In fact, MAI is the abbreviation of Member of the Appraisal Institute. Just as you know, this is an appraisal trade organization but an “appraisal.”
Compared to appraisers who are not a member of MAI, a MAI appraiser tends to own higher professional level. This is because MAI appraisal sets a higher professional standard for the existing and new members. That’s to say, if an appraiser wants to be one of them and hold the designation, he or she should complete the education offered by this appraisal trade organization. Of course, this offer is world-class.
For regular appraisers, the qualification for residential property, instead of commercial property, is mandatory. However, the MAI designation requires both, which makes a lot of sense in some special occasions. For example, in the case of a lender needs to appraise residential and commercial properties, apparently the regular ones are not an option or the lender hires both to have it done. Unfortunately, practice like that violates the law. Besides, hiring both is inconvenient and unsafe. So, the best bet for the mentioned lenders is to look for something like MAI certified appraisal because it is more reliable and comfortable. As an added bonus, certified appraisals would benefit the lenders far more than the uncertified ones.
A MAI certified appraiser is very versatile. As far as a commercial appraisal is concerned, he or she should do the good work to offer the most useful information to the client since the client needs to make decision based the report he made. The appraiser’s main work in this area is to give the client a general summary of the property and ambient environment and then write a report on the feasibility. Typically, this report should include a conclusion and the reason, which usually consists of accurate data, full details of facts, in-depth analysis, and the like. In short, what the certified appraiser has done is to maximize investor value.
However, this is not the end of a MAI certified appraisal. Unlike appraisals conducted by other appraisal trade organizations, the one done by MAI appraisal requires more service. In other words, a MAI certified appraiser needs to be responsible for his or her conclusion. In this case, the real estate appraisers have a very strong reason to protect their money and reputation. So they will do their best to make a fair and reasonable estimate. Specifically, the firm has to make up for a loss no matter either the investors fail to sell their properties at the recommended price because it is too high or the investors lose money at the recommended price because it is too low.
The good part of this liability is that all the MAI certified appraisers should follow the markets closely and study markets. As a result, the estimates they made are likely to be more accurate and reliable. After all, no appraiser would like risk his career and reputation to make a false appraisal.