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Nancy Jenkins
  • Real Estate Investor
  • Knoxville, TN
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Bank appraisals on commercial property

Nancy Jenkins
  • Real Estate Investor
  • Knoxville, TN
Posted Aug 3 2008, 10:50

Are bank appraisals for loans on commercial property typically lower than comps? I have commercial property that comp'd at $44,000. I decided to sell it quickly for 1/2 price just to move it fast for $22,000. The bank for the buyer came back with an appraisal of $25,000 on this property. I was surprised. Comparable commercial property is a worse location sold for $44,000 just 2 months ago. Are banks' appraisals usually low? If so, do banks appraise low to keep the seller from backing out of a deal when he realizes his property is worth alot more than he is asking? Thanks for any input.

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