A Commercial Appraisal Costs How Much?!
It’s Black Friday! Hopefully, you are getting some good deals and avoiding situations like this:
While we always strive to keep our prices down, many people who are unfamiliar with the commercial appraisal process are stunned after they are provided with a commercial appraisal quote. If you are only familiar with the costs/fees and turn-around times for single-family residential appraisals you may not understand the costs and time associated with a commercial report.
A commercial appraisal can take from 30 hours to several weeks depending on the complexity of the report. The level of detail and analysis differs significantly from a residential appraisal where much of analysis is done on a form where you primarily check boxes and fill in forms. The typical commercial appraisal is an in-depth narrative report ranging from 60 to over 100 pages. There are multiple valuation methods used (Income Approach, Sales Approach, and Cost Approach) whereas a residential appraisal only uses the Sales Comparison Approach. Commercial appraisal reports may feature a detailed site and building improvement analysis, diagrams & sketches, sales history & ownership, zoning information, regional and market area descriptions, floodplain analysis, age/life analysis, market analysis (supply, demand, vacancy, absorption and etc.), detailed published surveys, broker interviews, detailed highest & best use as vacant and improved, detailed valuation analysis, rent and sale comparables, expense comparables, cap rate comparables, adjustment grids and more.
A commercial appraisal costs anywhere from $2,000 to over $5,000 dollars with turn-around times of two to four weeks. Commercial appraisal costs vary primarily by the complexity of the assignment, availability of data, required turn-around time, scope of work and location.
We hope this has been helpful in answering your questions about what an appraisal may cost, have a Happy Thanksgiving and please don’t hesitate to reach out if we can answer any more questions!