Commercial Appraisal Tips
Dart Appraisal always has two goals in mind – acquiring competitive bids for you and providing quality appraisals that meet your deadlines. As we focus on obtaining competitive bids and maintaining a quality level of service, we offer the following commercial appraisal tips to keep in mind:
- Unlike residential appraisal orders with generally short life spans, the average turn time for full commercial appraisals is 18 business days. This includes the comprehensive review process.
- Appraisers bid their fee based on both complexity and turn time – the faster an appraisal is needed the more expensive the report will be. To illustrate – $2,000 for 15 business days or $2,500 for 10 business days. Place orders early in the process.
- Provide a complete description of the collateral and a clear definition of the scope of work. An example: 3 parcels of land. Proposed 8 building/80 unit apartment complex to be built on 2 of the parcels with the 3rd parcel to be developed at a future date. Need as is, prospective and stabilized values. Also need all amenities, FF&E and 3rd parcel valued.
- Make certain all intended users (SBA, USDA and/or any participating financial institution) are listed in the order at the time the order is placed. The scope of work can change depending upon loan program requirements so it’s important to know this fact when requesting bids.
- Provide as much contact information as you have for your client or the person or persons who will be giving the appraiser access to the subject property or providing the appraiser with project/supporting documents – Plans, specs, leases, etc.
- Upload project/supporting docs at the time the order is placed or very shortly thereafter.
- Once you are presented with bids, we strongly encourage you to respond with your bid selection within 2 business days. Appraisers’ schedules fill up quickly and they may not be able to meet your deadline if there is a delay engaging them.
Using a commercial Appraisal Management Company can streamline the process. If you are uncertain about any aspect of a commercial appraisal assignment – subject collateral, report type needed, values needed, due dates, bids, etc., please do not hesitate to contact a Dart team member who will be more than happy to answer any questions and work with you to get the assignment placed and moving forward.