Why will you need an appraisal? How do appraisals work?
In most cases, lenders need a professional, independent appraisal of the property you want to buy or refinance to ensure that it is worth at least as much as they are being asked to lend on it. In the unlikely event the lender would have to foreclose, they want to know they should be able to recoup at least the loan amount. If you are making a smaller down payment, if the complex is not completely stabilized or has had a colorful financial history, the lender is going to be even more interested in making sure the property that will be collateral for the loan is worth the loan amount requested.
A professional, independent appraiser will usually visit the apartment complex and inspect its interior and exterior. They will usually want to see the majority of the units, so all tenants will have to have proper notice of the appraisal date. The appraiser will form an opinion on the probable market value of the property considering sales of similar complexes, comparable rents of other properties in the area, the expense of running the complex and the cost to rebuild in the area and other factors. He or she will prepare an appraisal report explaining their conclusions. The appraisal belongs to the lender considering lending money with the property as collateral. Often, you can receive a copy of the appraisal either as a courtesy or in keeping with state law. Let us know you’re interested and we’ll help.
A typical appraisal can cost from $2000 but can be substantially higher for any conduit type of loan. You as the borrower will be paying this appraisal fee at the beginning of the loan process. Once you have an executed contract for the purchase of the units, you can simply provide us with the name of your realtor and we will schedule the appraisal with him or her and you can relax knowing that we will do everything in our power to ensure you receive a quick, accurate appraisal.