A "Valuation" question for my fellow professionals; how do you guys handle commercial & multi-family appraisals and valuations (BPOs) in the transactions do you? Any and all feedback is welcome! Thanks, John H Ackermann, CCIM
John, I am a commercial investor and a commercial appraiser but I don't think i understand your question.
Hi John, I am an appraiser and like Frank I am not quite sure what you are asking. Please give us a little more information and I will see if I can help.
John, I'm a has been appraiser and I'm lost too. I and I'd bet the guys above use all three approaches, and, the purpose of the valuation also matters, why and what kind of assessment is required..... the purpose of the appraisal.
Sounds more like asking opinions.
I don't put much stock in a BPO, especially commercial properties, frankly the larger the project the more involved it can be and Realtor/Brokers aren't trained nor do they have the experience nor the qualifications, unless they have obtained such from other experiences.
Say you have a small 140 unit high rise government owned that is subsidized housing (PHA) and it's being sold under a Mark-To-Market project, turned over to private ownership, it will take expertise and experience to take that on. No sale comps, not so valid market rents either, so I don't see just any RE broker doing that.
I see you have the CCIM designation, very good, so let me ask you your thoughts on the question posed. :)
Thanks Guys - I'm new to BP and my firm provides those types of services (multi-family & commercial real estate appraisals and BPO values in FL) and I'm wondering if the BP platform and it's forums will be useful in growing clientele as I am on the commercial side of things and BP seems primarily residentially focused. Thanks.
That it is John, we have members in Florida, can't say your services would not be used by them or others, but about half (probably more) on BP are residential newbies, but there is certainly interest in multi-family projects, guessing, maybe 20-25%.
I suggest you test the waters, contribute in the forums, exposure never hurts. Best of luck to you :)
Please don't let the large base interested in residential scare you off. I'm very interested in commercial (had an internship at a commercial firm in their appraisal division years ago during college and studied all I can on the subject, the internship helped solidify I have zero interest in becoming an appraiser and yet fanned my interest on the investor side) Definitely looking for more folks like yourself to contribute knowledge/experiences in this subject matter.
I think there are probably more people interested in the subject than it seems. I'm still looking to purchase my first commercial property and have a goal to have many in the portfolio in the years to come.
The site owners have also ventured into a couple of podcasts partially centered on commercial - maybe with more involvement from folks like you they can add a few more for consumption.