SouthPointe Solutions LLC has been providing commercial real estate appraisals in the Dallas Fort Worth Metroplex since 1993.
Frequently Asked Questions
Q. How much should I expect to pay for a residential appraisal?
A. A qualified, competent appraiser should charge within a range of $27 to $32 per hour to produce an appraisal report. The average residential appraisal takes approximately 12 and 15 hours to complete, which includes the physical inspection of a property, inspection of the comparable properties and completing the necessary report forms.
Q. How much should I expect to pay for a commercial appraisal?
A. The hourly rate is the same. You should expect to pay within a range of $27 to $32 an hour for a professional appraiser. However it takes a minimum of 80 hours to produce a narrative appraisal report on a commercial property. The rate of the appraiser stays the same, the complexity of the reports differ dramatically.
Q. Why is a commercial appraisal report so much more complicated than a residential appraisal report?
The residential form is generally a software based form where the appraiser loads the fields with data and adjusts the residential properties in a grid based on properties which are incredibly similar. In addition to that, most residential appraisals are based solely on the Sales Comparable Approach and the two other approaches to value are seldom used. However, if the two other approaches to value are requested, the fee usually increases as the appraiser now has more analysis involved to complete the report.
The commercial appraisal is a narrative report between 70 to 100 pages of research and development delineating valuation based on all three approaches to value.
Q. I have heard there is a report called a “Limited Scope” appraisal which I can get for less than a full blown narrative appraisal. Is this true?
A. It is true that there is an appraisal report called a Limited Scope appraisal. However, the appraiser has to do the same amount of work to produce the Limited Scope. Most appraisers will not provided limited scope appraisals for two reasons; first, as I said, the same amount of time goes into producing the limited scope from the appraiser so why charge less for the same amount of work. Second, the industry frowns on producing a limited scope appraisal unless it is being ordered by an end user, such as a financial institution, that will not be mislead by the limitations of the abbreviated report.
Q. In your examples you applied $27 an hour for the residential appraiser and $32 an hour for the commercial appraiser. What is the difference?
A. In the examples I have used the low end rate for the residential appraiser and the high end rate for the commercial appraiser as there is a distinct difference in levels of competency and license; three to be exact which are outlined by the Appraiser Qualifications Board (AQB) as follows:
Licensed Real Property Appraiser:
150 classroom hours, 2,000 hours of experience in no fewer than 12 months:
Someone who is qualified to appraise non-complex one to four units having a transaction value less than $1,000,000 and complex one to four residential units having a transaction value less than $250,000. This classification does not include the appraisal of subdivisions.
Certified Residential Real Property Appraiser:
200 classroom hours, 2,500 hours of experience in no fewer than 24 months:
Someone who is qualified to appraise one to four residential units without regard to value or complexity. This classification does not include the appraisal of subdivisions. To be a state certified residential appraiser qualified to do appraisals for federally related transactions, a state must have requirements that meet or exceed this minimum standard.
Certified General Real Property Appraiser:
300 classroom hours, 3,000 hours of experience in no fewer than 30 months:
Someone who is qualified to appraise all types of real property. To be a state certified general appraiser qualified to do appraisals for federally related transactions, a state must have requirements that meet or exceed this minimum standard.
SouthPointe Solutions LLC
The field of our experience and expertise covers a wide birth of different types of structures for appraising and reason why clients like you would want your property appraised. Whether you want to refinance, or divorce settlement, probate or just for your own valuation, we can provide this valuable service.