What a Commercial Appraisal Involves
An independent opinion of value, prepared to a professional standard, and a definitive checklist of what to have ready so the process moves efficiently.
A commercial appraisal is an independent, USPAP-compliant opinion of a defined value, most often market value, for a commercial property as of a specific date and for a specific use: financing, an estate or gift tax filing, litigation, a partnership buyout, financial reporting, or an assessment challenge.
The scope is set at the outset. The intended use and users, the type of value, the interest being appraised (fee simple, leased fee, or leasehold), and the effective date all shape the analysis. Defining them correctly at the start is what prevents rework later, and it is the first thing we settle in an engagement.
How an assignment moves from engagement to report.
- 01
Engagement and scope
We define the intended use and users, the type of value, the property rights being appraised, and the effective date. These decisions shape everything that follows.
- 02
Information gathering
You provide the property-specific documents listed below. We pull the public record ourselves: assessments, deeds, and comparable sales.
- 03
Inspection
We inspect the interior and exterior, measure and photograph the improvements, and note condition, functionality, and any deferred maintenance.
- 04
Market and highest-and-best-use analysis
We analyze the submarket and determine the property's highest and best use, which frames the valuation that follows.
- 05
The approaches to value
We apply the cost, sales comparison, and income capitalization approaches as the property type warrants. Income property leans on the income approach; owner-occupied and special-purpose property may rely on cost or sales comparison.
- 06
Reconciliation and reporting
We reconcile the approaches into a single supported opinion of value and document it in a USPAP-compliant report.
The single biggest thing a client controls.
Turnaround depends on the property and the assignment, but the variable most within your control is how complete the information is at the start. Gathering the items below before we begin is the most effective way to keep the appraisal efficient.
Check items off as you collect them. Your progress is saved on this device.
For every assignment
Income-producing property (office, retail, industrial, multifamily)
Owner-occupied and special-purpose property
Land and development sites
Proposed or recently completed construction
The most common cause of delay is waiting on leases or operating statements after an engagement has begun. One note on what we cannot do: we do not appraise to a predetermined figure. The independence of the opinion is what makes the report usable by a lender, a court, or a taxing authority.
Frequently asked questions.
How long does a commercial appraisal take?
It depends on the property type, the complexity, and the depth of analysis the intended use requires. A straightforward assignment may take a couple of weeks; a complex or contested one can take longer. The completeness of the information provided at the start is usually the largest factor within a client's control.
What is the single best thing I can do to speed it up?
Have the property-specific documents ready before we begin, particularly the rent roll, leases, and recent operating statements for income-producing property. Waiting on these after the engagement has started is the most common source of delay.
Which records do you gather yourselves?
We pull public information such as assessments, deeds, and comparable sales. What we need from you is the property-specific material that is not in the public record: leases, operating statements, surveys, plans, and the like.
Do you need to see the interior?
For most assignments, yes. A credible opinion of value depends on observing the property's condition and functionality firsthand, so arranging interior access is part of preparing for the appraisal.
How is an appraisal different from a broker's opinion of value?
An appraisal is an independent, USPAP-compliant opinion prepared by a certified general appraiser, developed and documented to a standard that lenders, courts, and taxing authorities will accept. A broker's opinion or comparative market analysis is a marketing estimate and does not carry the same standing.
Can you appraise the property to the value I need?
No. We form an independent opinion supported by the evidence. That independence is precisely what makes the appraisal useful; a value produced to order would not be credible to the party relying on it.
Ready to start, or not sure what applies?
Send the property and the purpose of the appraisal. We will tell you exactly what we need and respond with a fee and a timeline.