Legal & Litigation
Commercial Appraisal Review Services in Philadelphia
Independent review of existing commercial appraisals to assess accuracy and credibility.
Commercial real estate decisions often involve substantial financial exposure. When an appraisal is being relied upon for lending, litigation, acquisition, tax matters, estate planning, investment decisions, or other important purposes, an independent appraisal review can help determine whether the original valuation is adequately supported.
We provide commercial appraisal review services throughout the Philadelphia market for lenders, attorneys, property owners, investors, financial institutions, corporations, government entities, and other clients who need an objective assessment of an existing commercial real estate appraisal.
An appraisal review is more than simply determining whether another appraiser's value conclusion appears reasonable. A professional review examines the appraisal's methodology, market data, assumptions, analysis, and conclusions.
Who Needs This Service
- Lenders
- Attorneys
- Property owners
- Investors
- Financial institutions
- Corporations
- Government entities
Why This Appraisal Is Different
Depending on the scope of the assignment, the review may examine identification of the subject property, intended use and intended users, property rights appraised, effective date of value, highest and best use conclusions, market analysis, comparable sales, comparable rental properties, adjustments to comparable transactions, capitalization rates, discount rates, income and expense assumptions, replacement cost assumptions, depreciation estimates, reconciliation of the valuation approaches, extraordinary assumptions or hypothetical conditions, and overall support for the final opinion of value.
Commercial properties require particularly careful review because valuation conclusions may depend on numerous assumptions. Small differences in capitalization rates, market rent, vacancy, expenses, tenant improvement allowances, lease assumptions, or discount rates can produce significant differences in value.
The objective of an appraisal review is not automatically to challenge the original appraiser. The objective is to determine whether the analysis, methodology, and conclusions are credible and adequately supported by available market evidence.
The Appraisal Process
- 1
Obtain the appraisal report under review and the intended use of the review.
- 2
Examine the report's data, methodology, and reasoning.
- 3
Verify key information against available market data where appropriate.
- 4
Assess the credibility of the report's conclusions.
- 5
Deliver a review report documenting findings and their significance.
Commercial Property Types
- Office buildings
- Apartment properties
- Industrial facilities
- Warehouses
- Retail centers
- Mixed-use buildings
- Medical properties
- Special-use properties
Philadelphia Market Context
Philadelphia presents additional complexity because commercial property characteristics can vary considerably between Center City, University City, Northeast Philadelphia, suburban Philadelphia, and surrounding counties. An appraisal relying on comparable properties from an inappropriate submarket can potentially produce misleading conclusions even when the mathematical calculations are correct.
Appraisal reviews can be especially valuable during litigation. Attorneys may need to understand the strengths and weaknesses of an opposing appraisal before deposition, mediation, settlement negotiations, or trial.
Lenders may request reviews as part of underwriting or quality-control procedures. Property owners and investors may seek independent reviews when a valuation differs substantially from their expectations or from another appraisal.
Valuation Methodology
Review Methodology
The reviewer evaluates the report against accepted valuation standards, assessing data sufficiency, methodology, and the soundness of the conclusion.
Frequently Asked Questions
Is an appraisal review the same as a new appraisal?
No. A review evaluates an existing report rather than developing a new independent value. The reviewer may form an opinion about the report's credibility without necessarily producing a new value conclusion.
Can a review identify errors in the original report?
Yes. The reviewer assesses data, methodology, and reasoning, and documents any errors or unsupported assumptions along with their significance.
Who typically orders an appraisal review?
Lenders, attorneys, investors, and property owners who are relying on or challenging a third-party appraisal and want an independent assessment of its credibility.
Does the reviewer need local Philadelphia market knowledge?
Yes. Familiarity with the relevant submarkets is essential to judge whether the report's comparables and adjustments are credible.
Related Valuation Services
Need a Commercial Appraisal Review in Philadelphia?
If you have received a commercial real estate appraisal and would like an independent professional assessment, contact us to discuss commercial appraisal review services in Philadelphia and surrounding areas.
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