By Mark L. Plourde, MAI So you ask a simple question “What’s my property worth?”. Depending on whom you ask, the answer may be given quite quickly, but also may vary quite widely! Why is there such a difference? Perhaps it wasn’t clear just “what” the property actually consists of. For instance –where is it located? How much land is …
Why Hire a Commercial Real Estate Appraiser?
By Mark L. Plourde, MAI So you want to finance commercial real estate and the bank requires an Appraisal. Here are a few things you should know about hiring an Appraiser. As defined by the Uniform Standards of Professional Appraisal Practice (USPAP), the Client is “The party or parties (i.e., individual, group, or entity) who engage an appraiser by employment …
Appraisers, Evaluations, and Risk
On April 9, 2018 the Federal Financial Institution Regulatory Agencies adopted a Final Rule regarding Real Estate Appraisals that increased the loan threshold level from $250,000 up to $500,000, at or below which Appraisals are not required for commercial real estate transactions. The Agencies made this change after a period of study and public comment. It was determined that the …
How to Speed up the Commercial Real Estate Appraisal Process
By Mark L. Plourde, MAI When the parties of interest in a commercial real estate transaction finally reach agreement, and financing is a component of the deal, why does it then take so long to get a commercial real estate appraisal report completed? The simple answer is there are many obstacles to overcome in the valuation process for credible results. …
The “Cap Rate”
By Mark L. Plourde, MAI Published on Mereda You may hear the term “Cap Rate” in discussions or articles involving commercial real estate. Even if you already have an understanding of what the term means, here is a little more insight from an appraiser’s perspective. Simply put, a “Cap” Rate is used to convert income into value. To …
Opinions of Value
Opinions of Value – and why they differ By Mark L. Plourde, MAI So you ask a simple question “What’s my property worth?”. Depending on whom you ask, the answer may be given quite quickly, but also may vary quite widely! Why is there such a difference? Perhaps it wasn’t clear just “what” the property actually consists of. For instance …
The Role of the Appraiser
The Role of the Real Estate Appraiser By Mark L. Plourde, MAI What is the role of the real estate Appraiser in a purchase and sale transaction? Why isn’t the contract price used as the measure of market value? Well, for starters, one proposed transaction does not constitute a “market” in terms of value. Just because one buyer and …