Avatar's Blog
» Property Values - How to Determine Current Value
Avatar Financial Group lends up to 65% of the current value of commercial property. If you are refinancing commercial real estate property, you will be asked to provide information about the current value of the property when you submit your loan application. If you have a recent written appraisal, the task is easy. But, what do you do if you if do not have that written appraisal available?
Since every hard money lender must send out its own appraiser to determine the current quick-sale value of the property during the due dilgence process, it is best to avoid paying twice for an appraisal. In many cases, comparable properties in your area can be used to determine a reasonable selling value of your own property.
Contact a reputable commercial real estate agent and ask them what they believe you can get for your property if you want to sell it within the next 2-3 months. The realtor will likely be able to provide you with written comps in your area giving you a reasonable idea about the selling prices of properties that have been sold in the recent past and are on the market today. This will provide a reasonable indication of the current resale value of your property.
