As you know, we like to stay on top of the latest in commercial real estate, and that includes being knowledgeable of the most recent changes in regulations. The FDIC recently approved a new appraisal threshold for commercial real estate. As a result, the appraisal threshold raised from the $250,000 to the $500,000 mark. Now, commercial real estate transactions exempted by the increased threshold will no longer require appraisals and will instead utilize a commercial evaluation report. What does that look like for your bank? We’re decoding that very question (along with a few others) today.
How do I know if I need an commercial evaluation report?
The simple answer is your specific bank or credit union should have internal policies regarding whether to order a commercial evaluation report or an appraisal. As outlined above, loan amount is a good starting point, but if you have further questions, we can help you decide which is the best fit for your needs.
What is the cost associated with an evaluation and when will it be back on my desk?
By nature, evaluations are less detailed than appraisals. Because an evaluation is less tedious with fewer components, along with the increased threshold limits, fewer appraisals will be ordered. That will ultimately result in a quicker evaluation process for our clients, and allows us to offer CRE evaluations for a manageable, low price. Even better? We aim to for a turn-time no longer than 15 days.
What can I expect from a commercial evaluation report?
We offer a full-line of CRE evaluations to satisfy all our clients needs and they start at $575. This includes the basic information needed to fulfill reporting requirements. More detailed reports are available, too. Like our standard reports, these are completed by our knowledgeable, reliable, and experienced MountainSeed staff. We can help you determine exactly what you need.
The appraisal and evaluation process can seem dense, but with the right guidance, it doesn’t have to be. One of our recent webinars breaks evaluations down even more, but as always, let us know if you have any questions. We’re here to point you in the right direction.