(This story, in slightly different form, originally appeared in ALM's Daily Business Review.)
MIAMI-As the commercial real estate market continues to seek bottom, beleaguered owners, loan servicers and institutional investors are asking brokers to help determine property values. But brokers are balking at providing free work, and critics say the pricing can be skewed as the brokers hope they will be chosen to sell the property.
With sales scarce and troubled loans plentiful, brokers are sought out for their feet-on-the-street outlook. Who better to know a building's value than insiders with direct knowledge of tenant comings and goings, or unannounced deals in the pipeline that could affect sales and prices, the thinking goes.
Opinions differ dramatically from formal appraisals, which take longer to complete, cost thousands of dollars and must meet certain statutory standards. Appraisers take courses to earn industry trade group designations and certifications. Federal legislation is pending that would define a "qualified" appraiser and appraisal.
Recommended For You
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
