All appraisals are subject to review by Commercial Funding's real estate department. All appraisals are desk reviewed, some require field reviews, and others are rejected as inadequate. In cases where there are questions concerning the appraisal report, the Commercial Funding real estate department will contact the appraiser for clarification. In many cases, appraisers are able to supply additional information to support their opinion of value; however, it is important to note that this process always delays the review process. Commercial Funding reserves the right to reject appraisals that are deemed unacceptable by our staff.
It is important that appraisers and applicants be made aware of Commercial Funding's appraisal requirements before the appraisal is started in order to avoid any misunderstandings. Also, appraisers need to make themselves available to the Commercial Funding staff appraisers in order to avoid delay in the appraisal review process.
Complete details are available in our Appraisal Requirements Checklist.
Commercial Appraisal Review Process
Appraisal Formats and Contents:
Appropriate formats and the required contents of each appraisal are described in detail in our Appraisal Requirements Checklist. Some "form" reports are acceptable for specific property types, but Complete Summary narrative reports are more appropriate for most property types. Any questions regarding the format or content of a report should be discussed with Commercial Funding's real estate department before the appraisal process
begins. An executed Checklist must be included with each appraisal, so the appraiser should review it before the assignment is started.
The appraisal should be accompanied by appropriate documentation (i.e. agreement of sale, rent roll, commercial lease, etc.) as described on the Checklist. The lack of relevant documents will delay the review process.
The initial review of an appraisal may result in a request for a field review, a process that is controlled by Commercial Funding as described on our Field Review Checklist (also located in the Forms section of the web site). The applicant pays the fee for the field review.
The effective date of an appraisal must be within six (6) months of the date of closing. If the effective date is between six and nine months of the date of closing, the appraisal may be updated by the original appraiser (see Update Appraisal Checklist in the Forms section of the web site). If the effective date of the appraisal is more than nine months from the date of closing, a new appraisal is required.
Selection of an Appraiser:
Commercial Funding does not maintain a list of "approved" appraisers, but does maintain a nationwide database of "Preferred" appraisers that have submitted satisfactory reports in the past. The appraisals that are submitted by Preferred appraisers are still reviewed and subject to the Appraisal Requirements Checklist; the preferred appraisers have demonstrated, however, the ability to submit a report that meets the Commercial Funding standards.
The appraiser must be General-Certified and have experience with the type of property being analyzed. These guidelines are described on the Appraisal Requirements Checklist.
Commercial Funding will assist the broker in selecting a Certified General appraiser from one of two sources: 1) the Commercial Funding Preferred Appraiser list or 2) a designated member of the Appraisal Institute. All appraisers are required to contact the appropriate Commercial Funding Real Estate Analyst to discuss the format, content, and methodology of the appraisal prior to initiating the assignment.
For information on how Commercial Funding selects an appraiser who is appropriate for an assignment, a broker may contact the Commercial Funding Loan Officer or Real Estate Analyst.