Ryan C. Ward, MAI
Robert A. Horning, MAI
Howard R. Levy, MAI, AI-GRS
Nancy K. McLerran
Agencies & Non-Profits
The Commercial Appraisal
Those who are unaware of the commercial appraisal process are frequently surprised when they are provided with a fee quote for a commercial appraisal. Most people are only familiar with the cost and turn-around times of single-family home appraisals and many do not understand why it takes so long to complete a commercial appraisal. Therefore, the following is to help people understand the commercial appraisal process.
A commercial appraisal is an involved process that can take an appraiser from 20 to over 80 hours, depending on the complexity of the property appraised and the type of report the client needs. While a single-family home appraisal is typically written on a form of 10 to 20 pages, a typical commercial appraisal is a narrative report ranging anywhere from 60 to over 100 pages. There are multiple valuation methods (Cost Approach, Sales Comparison Approach and Income Approach) whereas a residential appraisal typically only uses the Sales Comparison Approach. Commercial appraisal reports feature detailed regional, city and neighborhood analysis, site analysis, building analysis, zoning analysis, market analysis, broker interviews, highest & best use as vacant and improved and detailed Cost, Sales and Income Approaches to value. Each of our comparables are verified by our staff with at least one party to the transaction.
Typically, commercial appraisals costs anywhere from $2,000 to over $5,000 with turn-around times of two to four weeks. The commercial appraisal cost varies primarily by the complexity of the assignment, availability of data, required turn-around time and scope of work. For example, a 40 tenant building would require additional time in order to analyze each lease when compared to performing an appraisal of a single-tenant building. Quality is more important than cost when choosing a commercial appraiser. Not only do we deliver quality results, we deliver on-time, every time.
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Appraisal Group, Inc.
3510 Unocal Place, Suite 209, Santa Rosa CA 95403