What is price for commercial appraisal? SF Bay area

Question

Hello, I need some quick advice. I've been told by my bank that commercial appraisals cost way more than residential  appraisal in the area. It's my first commercial building so I was shocked to learn it is almost 5 x more! I'm in the SF bay area, specifically Hayward, and the best quote they found was $3800. I am used to paying $700 on avg for residential. When I called local appraisers to check pricing, they all told me they can't do commercial because you need a different license. Any people from SF bay area that can comment on this? Thanks!

Matt J. · Answer

@Angel Lee That doesn’t sound unreasonable. I just paid $2,800 for an 8 plex I’m getting ready to close on. My credit union got 3 appraisal bids that were $2,800, $3,500 and $3,800. They went with the lowest. I also had to pay $650 for a review of that appraisal (standard policy) and another $600 for an environmental. All had to be paid by me upfront.

Robert C. · Answer

@Angel Lee, Yes, that's true. It can depend on the size of the building and speed/availability of appraisers. Ranges I've experienced are anywhere from a couple thousand to above the $3800 you were quoted. If you're unhappy with the bid, you can have your bank re-bid the appraisal, but that will of course delay the process. Most banks I've worked with do a blind bidding process and choose between three quotes.