Property Tax Inquiries Call 713.290.9700

Commercial Real Estate Appraisals

Need a commercial appraisal? It is a whole different ballgame compared to the residential appraisal you got when you bought a home. Residential appraisals are typically $350-$450 and take about a week to deliver. Commercial appraisals are typically $1,800-$2,800 and take about 2-3 weeks to deliver? What’s the deal? The answer is time. The appraisal industry does not charge fees based on the value of the property, which could obviously lead to biased appraisals. Appraisers charge fees based on the time necessary to complete an assignment. In the residential arena, all of the sales and rental data needed to complete the appraisal are found in one easy source, thanks to MLS. Brokers using MLS are required to provide sale information on their properties. So all the residential data needed is at the appraiser’s fingertips and can be searched in a myriad of ways within minutes.

Commercial appraisals are very different. Texas is one of only 12 states that are “non-disclosure” states. This means that when a property sells, the sale price is not disclosed in the deed records. There is no single, all-inclusive source of commercial sale prices like MLS for commercial appraisers. Appraisers must use a multitude of resources to track down recent, comparable sales and their pertinent details. This takes time, whether it is driving the neighborhood for broker signs, sifting through on-line realtor websites, deed recording service websites, appraisal district websites or waiting for a return call from a broker who can confirm the sale price on a particular sale. Additionally, residential reports are a 10-20 page form that can be automated to some degree, and have limited narrative. Commercial appraisals are a narrative format typically between 50-150+ pages. As you can see, there is a substantial difference in time requirements for the two types of appraisals.

Hopefully this article helps illustrate the reasoning behind the considerable difference in fees for residential appraisals versus commercial appraisals. The answer is time.

John Fisher CCRA, LEED AP

Managing Director, Appraisal Services

O’Connor & Associates

Blog Author

Patrick O’Connor, MAI, Owner and President
Patrick O’Connor has been active in reducing property taxes, providing expert witness testimony and appraising commercial real estate property since 1983. Pat is active in publishing analyses and data with respect to the real estate market, while being a highly regarded media spokesperson for the real estate community. He holds a MAI, the highest achievable designation from the Appraisal Institute, and is a licensed senior property tax consultant. Pat earned a Master of Business Administration from Harvard University. In 2001, he authored the first definitive consumer guide to Texas property taxes, Cut Your Texas Property Taxes.

Property Tax Protection Program™

No cost to enroll

Recents

The Residential Property Protection Program™
is powered by O’Connor
  • Enter your information below and your documents and enrollment information will be emailed to you within one business day

  • Hidden
  • Hidden
  • Hidden
  • Call 713.290.9700 to discuss with a representative.

    Please monitor your E-mail and spam filter. If you don't receive your enrollment documents within 24 business hours, call 713.290.9700 8am - 5pm CST

  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • This field is for validation purposes and should be left unchanged.

When you submit your enrollment, you understand this is a risk free offer to you. If your taxes are not reduced you PAY NOTHING, and a portion of the tax savings is the only fee you pay when your taxes are reduced.

Property Tax Protection Program™

You pay nothing unless we reduce your property taxes, and then only a portion of the savings. There is no flat fee, no sign up fee and no setup fee. We protest your property taxes aggressively every year, and you only pay if and when we reduce your property taxes.

O’Connor is the largest property tax consulting firm in the U.S. Our licensed tax consultants and administrative support team benefits home and property owners by reducing property tax assessments, filing personal property renditions, reviewing tax statements, protesting over-assessed property values, and attending informal tax hearings and appraisal review board meetings.

 

We work tirelessly to protest and lower your taxes with:

  • Informal hearings
  • Appraisal Review Board (ARB) hearings
  • Coordinating judicial appeals