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 …