Commercial Property Appraisal
Commercial Property Appraisal
 


Commercial Property Appraisal Frequently Asked Questions

  1. Why do I need your service? Can't I just call my Realtor or Lender to find out what the commercial property is worth?

  2. What information will I find in your valuation reports?

  3. How are your valuation report estimates determined?

  4. Will your valuation reports tell me who owns the property, when it was bought it, how much they bought it for and what the current owners mailing address is?

  5. Do your valuation reports contain area comps?

  6. Do you have XXX property in your databases?

  7. A Realtor told me I could sell my property for $XXX. Your valuation report told me it's worth $XXX. Which one is right?

  8. What are the benefits of your valuation reports?

  9. How much do your valuation reports cost?

  10. How do I get your valuation reports?

  11. What types of property do you provide reports on?

  12. What is an appraisal?

  13. What is a comparative market analysis?

  14. What is an automated valuation analysis?

  15. How is the automated valuation analysis limited?

  16. How is our service different from an appraisal or comparative market analysis?

  17. Can I order a report on property I don't own or am thinking of buying?

  18. Who typically purchases your reports?

  19. What if I get error messages and can't get a report for some reason?

  20. Is purchasing a report from Commercial Property Appraisal secure?

  21. What credit cards do you accept?

  22. Is my credit card information safe?

  23. Is my privacy protected?

  24. Will I be contacted regarding special discounts and offers?

  25. What are cookies and do you use them?

  26. What if I need help from your customer service department?

  27. How do I send you my feedback on your web site?

  28. What is your refund policy?

  29. Can I add a link from my web site to CommercialPropertyAppraisal.com?

If you have a question that you do not see answered here, please let us know.

 


What information will I find in your valuation reports?
Our valuation reports contain important information used in the automated valuation process. These include a cash flow based valuation of the commercial property and details on the subject property.
See a sample report.

Cash Flow Based Valuation:  This is a mathematical calculation where the cash flow generated by the commercial property determines its value. This equation is used by all major lending institutions around the world to determine a commercial property's value, but is rarely shared with anyone outside the lending industry.



How are your valuation report estimates determined?
Our reports are based on an automated valuation analysis that determines the estimated value of a commercial property based on the property's income and expenses. This is the same estimate the major lending institutions use to determine the value of commercial property before a professional appraisal is done. This estimate is what most banks and lenders will consider the property to be worth and will be willing to loan on. As a consequence, if you agree to purchase a commercial property that is priced to high, a bank may not provide you with a loan for the purchase amount. Thus, always know what its worth before you buy or sell.



Will your valuation reports tell me who owns the property, when it was bought it, how much they bought it for and what the current owners mailing address is?
Our valuation reports will tell you what the estimated value of the commercial property you are interested in is based on the income and expenses of that property.
See a sample report.

If you're looking for specific data on a certain property, above and beyond an estimated value, such as who the owner is, when it was bought, how much they bought it for, etc., we recommend you try the Electronic Appraiser server listed in our Resources section.



Do your valuation reports contain area comps?
Our valuation reports will tell you what the estimated value of the commercial property you are interested in is based on the income and expenses of that property.
See a sample report.

Unfortunately, finding comps for commercial property is almost impossible in most areas of the world. Comps need to be within the last 3 months, within 1 mile of the subject property and be of like kind. But there are so few similar commercial properties in any given metropolitan area that finding suitable comps is very difficult!

With residential real estate, finding comps is easy because there are so many similar properties in any given 1 mile radius. For example, your 3 bedroom 2 bath single family house built in 1990, 5 doors down from my 3 bedroom 2 bath house build in 1989 is going to be worth about the same amount.

However, with commercial property, a 12 unit apartment building built in 1947 that needs $100,000 in rehab work IS IN NO way similar to a 23 unit apartment building built in 1985 that has been meticulously maintained and needs no rehab work at all and that is 3 miles away! There is no way you can compare those two! So what do you do? How do you determine what the value of the property really is?

Because comps are almost impossible to find on commercial property, the major lending institutions use a valuation formula to determine the property's value before an appraisal is done. This is the same equation we use on our site to generate your report.

If you're looking for specific data on a certain property, above and beyond an estimated value, such as who the owner is, when it was bought, how much they bought it for, etc., we recommend you try the Electronic Appraiser server listed in our Resources section.



Do you have XXX property in your database?
Our valuation reports will be able to tell you what the estimated value of any commercial property is based on the income and expenses of that property. See a sample report. We do not however house specific data or information on any commercial properties in our databases. The values generated in our reports are based on the income and expenses of the subject property that you, the user, input.

If you're looking for specific data on a certain property, above and beyond an estimated value, such as who the owner is, when it was bought, how much they bought it for, etc., we recommend you try the Electronic Appraiser server listed in our Resources section.



A Realtor told me I could sell my property for $XXX. Your valuation report told me it's worth $XXX. Which one is right?
Your Realtor is most likely basing his guess-timate on comps. Realtors try to find like-kind properties within a one mile radius that have sold within the last 3 months and then guess at how similar those prices could be to yours if you sold it. This is almost impossible to do with commercial property because there are so few like-kind commercial properties in any given one mile radius that have sold in the last 3 months! Learn more.

Our valuation estimates are based on what the major lending institutions will value your property at based on the cash flow it generates. This number is important as it will show you what a bank or lender will consider the property to be worth for loan purposes. Some lenders will loan you up to 90% of the value of the property...but that's 90% of their valuation, not 90% of what you purchased it for. Our estimate will show you how a bank or lender will value your property so you can predict the first and second loans you will need to get. Learn more.

While these are both good starting points, the only true way to determine the value of any commercial property is to see what someone is willing to pay for it.



What are the benefits of your service?
Our reports show you exactly what an income producing commercial property is estimated to be worth down to the last cent! See a sample report.

Benefits to buyers:

  • Our valuation reports help buyers determine if a property they are considering buying is priced too high and what the estimated price should be.

  • Our valuation reports estimate the value based on the income and expenses of the commercial property. This is the same estimate the major lending institutions use to determine the value of commercial property before a professional appraisal is done. This estimate is what most banks and lenders will consider the property to be worth and will be willing to loan on. Thus, buyers will know in advance how much most banks and lending institutions will be willing to loan on the property.

  • Our reports also aid buyers in price negotiations, where sellers have priced their commercial properties too high.

  • We also offer buyers a chance to buy directly from sellers in their area for a small yearly fee. Buying directly from sellers typically enables buyers to be able to buy at below market values because the seller doesn't have to pay a 6% real estate agent commission.

Benefits to sellers:

  • Our reports help sellers determine what the estimated value of their commercial property is based on the property's income and expenses.

  • We also offer sellers a chance to sell directly to investors in their area at no charge! This FREE service can save sellers $10,000's of dollars! As an example, on a $750,000 apartment complex, if no 6% real estate agent fee is paid, the seller saves $45,000!



How much do your valuation reports cost?
As you can see below, we offer discount pricing if you buy 2 or more reports:

  • 1 report costs only $24.95
  • 2 reports cost only $44.95 (save $4.95 by buying 2 reports)
  • 3 reports cost only $64.95 (save $9.90 by buying 3 reports)
  • 4 reports cost only $84.95 (save $14.85 by buying 4 reports)
  • 5 reports cost only $99.95 (save $24.80 by buying 5 reports)
  • Order your report now

These are GREAT prices when you consider that typical commercial property appraisals start around $800 and can go all the way up to $10,000 depending on the size and cost of the commercial property.


How do I get your valuation reports?
Simply purchase the number of reports you want, fill in the address, type of commercial property, property's stated income, etc. and your report will be created instantly for you in a well organized and easy to read format. View a sample report.


What types of property do you provide valuation reports on?
Commercial Property Appraisal provides valuation reports on all income producing commercial properties:

  • Multifamily
  • Office
  • Industrial
  • Retail
  • Shopping Center
  • Lodging & Hospitality
  • Senior Housing
  • Etc.

Residential property valuation reports are also available but not for vacant land or agricultural properties.


What is an appraisal?
An appraisal is an estimate of a properties fair market value prepared by a licensed professional who takes into consideration many items, including: recent sales of comparable properties, location, building size, cash flow and a physical inspection. An appraisal may run anywhere from $800 to $10,000 (depending on the size of the property) and usually takes from 2-5 weeks to prepare. Appraisal standards are set by the Appraisal Institute and are required by lenders under various federal and state banking laws. Our reports are not an appraisal, but an excellent and inexpensive way to help determine value.


What is a comparative market analysis?
A comparative market analysis is an unscientific and informal estimate of the market value of a property prepared by a real estate broker/agent based on their knowledge of a particular market area and recent sales of similar properties in that market. Realtors often use this method when advising clients what the listing price of commercial property for sale should be. Comparative market analysis rarely work for commercial property because there are so few similar properties in any given area. As an example, a 10 unit apartment building built in 1965 five miles away from your 15 unit building built in 1945 is in almost no way comparable, that's why our valuation reports serve as a better estimator of the value of the commercial property. Our valuation reports employ the same mathematical formula the major banks and lending institutions use when determining how much to loan on a certain commercial property.


What is an automated valuation analysis?
An automated valuation is what you get when you buy a valuation report from us. We prepare our automated valuations based on specific data on the subject property and then estimate the value of that commercial property in real time. Our valuations are based on the cash flow of the property and use a complex, patent pending valuation engine to produce your report. Our valuation reports are second only to a physical inspection and opinion by a qualified professional appraiser which can cost you $800 to $10,000 depending on the property. An automated valuation is not an appraisal and no human interaction or inspection is involved in such an analysis; however banks and lenders routinely use such analysis to check the accuracy of appraisals in what is known as the appraisal review process. Furthermore, appraisers and realtors routinely use the same type of information when conducting valuations and market analysis of commercial properties.


How is the automated valuation analysis limited?
The automated valuation analysis is not an appraisal and no site inspection is completed as part of the process. Excess depreciation or wear and tear, quickly appreciating area, as well as property upgrades will not necessarily be reflected in the automated model and the analysis is limited in discerning these types of conditions.


How is our service different from an appraisal or comparative market analysis?
A licensed appraiser certifies to the estimate of value in an appraisal based on a physical inspection during an onsite visit. The automated valuation model we use is designed to duplicate and take into consideration the same functions as an appraisal but is limited in the things it can discern as noted above. A comparative market analysis is a guesstimate of value based on the particular level of expertise possessed by the realtor preparing the analysis and this may lack critical information not available to the realtor at the time. A comparative market analysis lacks the complex valuations analysis that you get when purchasing a valuation report through Commercial Property Appraisal.


Can I order a report on property I don't own or am thinking of buying?
YES! You do not need to own the commercial property to order a valuation report on it. All you will need to generate your valuation report is the yearly income and expenses on the property. This information is readily available from the seller or listing agent.


Who typically purchases your reports?
Anyone who is interested in knowing the estimated value of a commercial property buys our valuation reports. These typically include buyers, sellers, investors, real estate agents, appraisers, mortgage brokers and lending institutions, who use our reports for a variety of functions including portfolio analysis, appraisal review, compliance, analysis, reports and other services. See our testimonials section for a good cross section of our users.


What if I get an error messages and can not get a report for some reason?
Please make sure that you enter all the required data on the property you are looking for a valuation on and that the property is not a residential home, vacant land or agricultural property. Residential home valuations can be obtained here. If for some reason you do get an error message, please contact us and we will be happy to remedy the situation.


Is purchasing a report from Commercial Property Appraisal secure?
Purchasing valuation reports online through reputable companies is as safe or safer than giving your credit card information to retailers or in regard to catalog sales via the telephone. Commercial Property Appraisal has sold thousands of such reports and we have a sophisticated credit card authentication and verification system to prevent fraud. You should feel as, if not safer, as when you are using your credit card in a retail store or restaurant.


What credit cards do you accept?
Commercial Property Appraisal accepts customer orders via PayPal, Visa, Master Card, Discover, American Express, Dinners, JCB and debit cards with the Visa and Master Card logo. We accept credit cards from around the world in any currency.

Commercial Property Appraisal Supported Credit Cards


Is my credit card information safe?
Commercial Property Appraisal uses PayPal to handle all transactions. PayPal uses a secure transaction processing system which employs a 128-bit Secure Sockets Layer (SSL) program and other safeguards. All information is encrypted including all credit card and personal information. All eCommerce transactions are carried out using a real time, automatic payment gateway.


Is my privacy protected?
Commercial Property Appraisal respects and values your privacy and is dedicated to maintaining your privacy with respect to any information you provide concerning your interaction with our web site. Commercial Property Appraisal takes every precaution to protect your information and all such information is restricted in a secure environment. See our Privacy Policy for more information.


Will I be contacted regarding special discounts and offers?
If you select the option to receive information on special discounts or offers, we will contact you via e-mail or other media from time to time. Some Commercial Property Appraisal offers may include special pricing on new reports or products, discounts on the products of related entities, newsletters or other free information, discounts for multiple reports, professional volume discounts, special offers from our affiliates and other benefits.


What are cookies and do you use them?
Cookies are bits of information stored on a computer hard drive which stores information about the user. Cookies are used in most web sites and help a user gain access and interaction with a particular web site including www.CommercialPropertyAppraisal.com. Cookies help us track data which relates to usage patterns and helps us improve our content and method of delivery. Cookies may provide a purchase history and alert us to when a customer is entitled to special discounts. If you do not want any information collected through the use of cookies you can disable the function in your browser which activates the cookie feature. You can find more information on the subject in our Privacy Policy.


What if I need help from your customer service department?
If you need help from our customer service department, please email us.


How do I send you my feedback on your web site?
Please help us improve our service and web site by emailing us. All emails are kept confidential.


What is your refund policy?
As detailed in the Terms of Use Agreements that you agreed to before being allowed to purchase your valuation report, we have a no refund policy on valuation reports. Our valuation reports will tell you the estimated value of a commercial property based on the amount of income it produces. Our reports use the same automated valuation process the major lending institutions use when evaluating how much they are willing to loan on a commercial property.
Thus, we can not be held responsible if you are unhappy with the value that is generated.


Can I add a link from my web site to CommercialPropertyAppraisal.com?
Yes! We gladly accept all links from your sites to ours. In addition, we also have a generous affiliate program which allows you to place banner ads or text links directly on your web site and financially benefit from all the customers you send our way. Learn more about our affiliate program today.


Customer Success Stories

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Office
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© Copyright 2004-2008 Commercial Property Appraisal. All rights reserved.

Commercial Property Appraisal is the only company in the industry that provides instant, online commercial real estate valuation reports to real estate investors, appraisers, mortgage brokers, financial institutions and real estate agents throughout the world. Commercial Property Appraisal is not a licensed appraiser and no aspect of our service is an appraisal. Our reports cannot replace an appraisal or similar report rendered by a licensed, professional appraiser. Always consult a licensed appraisal professional before contemplating any real estate transaction. The materials and information on this web site are provided to help our users make informed personal real estate buying, selling and ownership decisions by estimating value and assessing risk. Commercial Property Appraisal valuation reports are provided to be used at your own risk.