Commercial Appraisal Cost

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Commercial MAI Appraisals will cost between $2-5,000 depending on the size of the subject property. I am posting to help investors avoid sticker shock when applying for a commercial or multifamily loans. The majority of commercial lenders, whether institutional or private, will require a lender ordered MAI appraisal as a financing contingency.

Some investors believe that appraisals cost between $5-700. This cost is typical for residential 1-4 unit appraisals and/or non-MAI commercial appraisals. The upfront costs needed to secure purchase financing (or refinancing) for a commercial property are $20-30 for a credit report and $2-5,000 for an appraisal. However, there are some lenders that will waive the appraisal fee for female investors and married couples that are taking financing in the wife's name.

[Don Konipol]

@Eddie LeGrand-

“. However, there are some lenders that will waive the appraisal fee for female investors and married couples that are taking financing in the wife's name.”

I am totally unfamiliar with this. Can you further elaborate?

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@Don Konipol,

The Free Appraisal program was created to encourage female real estate investing. As long as the borrower is female, then the appraisal cost will be waived. This scenario applies to non-owner occupied investment purchases including SFR 1-4 units, apartments, offices, and retail buildings. Financing is with private money and Free Appraisals are available nationwide.

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Double post

[Ronald Rohde]

Useful cost guides! Thanks

[Cody DeLong]

The appraisal for my 11 unit here in Maine on a Commercial loan was only $1800. 

[Kyle Baker]

My last one was $3,000 on an SBA loan for a 40 unit plus office self storage facility. Wasn't particularly pleased with that number...

[Brianne Leichliter]

@Eddie LeGrand-Sawyer

Can you provide more detail on this program? Or where can we go to get more info?

Thanks!

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Originally posted by @Brianne Leichliter:

@Eddie LeGrand-Sawyer

Can you provide more detail on this program? Or where can we go to get more info?

Thanks!

@Brianne Leichliter I can provide more details on the program. Please message me and I will get you that information. Thanks!

[Eileen McCue]

Curious to know what others are seeing for appraisal costs and timeframes for commercial properties currently.

@Kyle Baker@Kyle Baker and @Cody DeLong I am in Maine as well and am paying $3750 for an appraisal on a small (1000sq ft) mixed use building (1st floor offices, 2nd floor studio).  This feels quite high to me, we just refinanced a 6-unit over the summer and that appraisal was in the $1-2k range. We decided in the long run we can absorb the cost, but that price point is challenging to reconcile (the appraisal doesn't appear to be 4x better...and the time constraints are tough). Apparently there were only two appraisers that responded to my lender and this was the only one who could meet the 60 day closing.  I just put an offer in on a 5-unit and am concerned that the appraisal timing will be an issue for the sellers.  In the past we would have been able to offer to close in 30-45 days even with financing.  Seems like the market in Maine for appraisals is tight right now!

[Will Stewart]

@Eileen McCue

Sounds about right, I just paid $4k for one in NH on a mid size MHP. I did have a quicker turn- 3 weeks- but that was because of an existing relationship 

[Eileen McCue]

@Will Stewart thanks, Will.  Sounds like this is just part of the market here at the moment.  Definitely adjusting my spreadsheets to account for the increase!