What Is An Mai Appraisal?

Mai appraisals are among the most sought after appraisals in the industrial real estate world. Mai stands for Member of the assessment Institute, a trade organization which monitors appraisers and holds them to a higher approved than appraisers who are merely licensed and do not belong to such an organization. There are other assessment 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 assessment Institutes class offerings, and holds this designation. However, it's often much easier to refer to the assessment itself as being certified than to hold to technicalities.

Maui Property For Sale

An appraiser who has earned the Mai designation is qualified to and experienced in the execution of both residential and industrial properties. Many other appraisers are only qualified for residential property. At one point, lenders were likely to want that an assessment 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 increase the chances of a favorable lending situation, since the lender will feel more comfortable. An Mai certified assessment offers lenders a reliability that allows them to be safe bet in their investment.

A industrial assessment by an Mai certified appraiser can comprise many things. Generally, it will furnish an summary of the community, neighborhood, and general area in which the asset 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 consulation of the property's value from several separate approaches will also be included. The appraiser may also make a recommendation of which valuation is most approved 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 assessment firm assumes liability if the assessment 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 little money. Because of this, appraisers have a vested interest in development 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 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 assessment possible.

What Is An Mai Appraisal?