Let's talk appraisals...
Appraisals play a very big part of buying, lending and selling commercial real estate. 

How have had you had  success with appraisers and how can you set your building up for the best results when dealing with appraisers? 

What do you do when you're not happy with the results of the appraisal? 

How far apart do you find sale price and appraisal price is usually for Industrial + commercial? obviously with tenants and different rent incomes the price will fluctuate if you are selling on a cap rate?
[{"id": "ey72m8o", "text": "Whenever we have appraisals that come up shorter than expected, we try to find evidence (either the property itself or market comparables) that help back our reasoning to increase value. Without evidence, there\u2019s no way an appraiser could possibly make adjustments to the value. For example, with a skilled nursing facility we\u2019re working on, the appraisal was completed for a recently acquired property. The number seemed low, given the fact that the Medicaid rate used was inaccurate, the expenses were too high for certain line items in the market. With an updated Medicaid rate letter and more accurate expense comparables, we were able to have a strong story to back up why the value should increase. \n\nHowever, I would say the appraisers are usually pretty accurate, and we don\u2019t usually have to change much for already existing buildings. There are a lot more to adjust for buildings looking to get built though.", "replies": [], "depth": 1}, {"id": "ey7ak6q", "text": "Such a loaded question but, I will try to be brief. I happen to be an appraiser and Coll3534 has got it.\n\nTo set your building up and prepare for inspection, if the building is not properly maintained then this will reflect the overall condition of the property\u2026 Fix problems if possible. \n\nPrepare data and give to the appraiser in person and via email. Why both? So, you have a paper trail and can ask how certain adjustments were or were not calculated.\n\nIf you disagree with something have data to back up your theory. Data, Data, Data. I can\u2019t say this enough become a data expert. \n\nDon\u2019t compare a recently painted building to a newly constructed building.  1999 and 2019 paint can\u2019t fix 20 years of depreciation. Happens all the time. Be realistic. \n\nThe appraiser never wants to kill a deal with a low opinion of value. The lender (if there is a lender) and their client also really don\u2019t want the deal to be killed. The appraiser can only come up with a value based on data. If surrounding comparable data is low, then your appraisal will come in low.\n\nThere are literally 100\u2019s of different factors that play into an appraisal and each assignment is different even if it is the same building 2-weeks later. The data is always changing. \n\nHope this helped.", "replies": [{"id": "ey862is", "text": "Can\u2019t stress your point about backing things up with data enough. Can\u2019t tell you how many times I\u2019ve had borrowers and loan officers say something like \u201cI just feel like there should be better data out there.\u201d Well if you know of something better then fill me in, otherwise you don\u2019t really have a leg to stand on. I\u2019m not going to know every single recent sale or lease and the ones I\u2019m using are the best I have available.", "replies": [{"id": "ey9qj0m", "text": "Amen! I\u2019ll search high and low and beg borrow and steal for the necessary data. Having good data solves all problems. People don\u2019t care about giving you the things you ask for or need until the appraised value doesn\u2019t meet the sales price. Then the flood gates open and it\u2019s all hands on deck. Although by that point, it is rare their data is better.", "replies": [{"id": "eyah17n", "text": "Ha, ain\u2019t that the truth. I did an appraisal maybe two years ago and this guy sent me alllll sorts of comps after I delivered the report, and one of the comps he sent me was from 1996. Sorry man, using a 20 year old comp might be a red flag in the review process.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ey88bex", "text": "I, too, am an appraiser and while we try to be as fair and unbiased as possible... our collective pet peeve is borrowers who are slow to respond/ don\u2019t respond and don\u2019t get us the requested data in a timely fashion. It would be a huge help to us all if all borrowers were fast and forthcoming!\n\nBut yes, we are not in the business of killing deals on purpose.", "replies": [], "depth": 1}]