Commercial real estate appraisals are seen quite differently depending on whose eyes they are seen through. Lenders consider it their basis for the whole process just after the borrower’s ability to pay, while borrowers see it as a necessary evil. There are many things that those not directly involved with the process do not understand […]
In the past twenty years the use of the cost approach for appraising commercial real estate has taken a drastic downturn. The principle of substitution is the basis for using the cost approach. The cost approach valuation is derived by adding the cost of the land (using the comparable sales method), replacement cost and entrepreneurial […]
Obtaining a commercial real estate appraisal requires gathering data to gauge the current value of the property. Not just anyone can make an appraisal of the property and in fact, most areas across the globe require that the person doing the appraisal have some sort of license or certificate qualifying them for the job. Scott […]
Orlando commercial real estate appraisers know their role is to accurately estimate the value of the buildings they are hired to appraise. They look at the building, the market surrounding it, and similar buildings. While an appraisal weighs a number of different factors, keeping your building in good condition and clutter free can help you […]
The principal objective of this article is to help the reader of a commercial real estate appraisal to determine whether or not the sales used and analyzed are applicable to the property being appraised, with adequate documentation to assist with the key elements for their selection and reasoning for all adjustments used in reaching the […]
Orlando commercial real estate appraisers have a challenging job. We have to go through commercial properties and give our honest opinions of what the property is worth in today’s market. Unfortunately, given the ongoing challenges in many areas of commercial real estate, a lot of owners end up disappointed with their real estate appraisal. When […]
Would you rely on an amateur if you needed surgery? What about hiring an inexperienced dentist to perform a root canal? The same should be asked if you are purchasing commercial real estate. Don’t ignore the professionals when you are about to embark on what may be one of the most costly financial decisions of […]
In an effort to jump-start the ailing American economy, the Federal Reserve announced its third round of quantitative easing (QE3) in mid-September. Two of the main measures of QE3 consist of the Fed’s purchase of mortgage-backed securities and the ongoing Operation Twist, a safeguard designed to keep lending interest rates low. This latest announcement by […]
Purchasing commercial real estate is an investment worth venturing if the buyer is knowledgeable about the product and the processes involved. Knowing what to expect with regards to the commercial real estate appraisal is a significant element of the commercial building purchase, and should be understood as well. A business owner will have a lot […]
At the start of the new year, Jan 1, 2013, lenders will have more incentive to make loans available to consumers who want to purchase property. New guidelines announced by the Federal Housing Finance Agency (FHFA) will limit banks’ risk exposure to defaulted mortgages by clearly defining the lenders’ repurchase exposure and liability. By specifically […]
