Ordered by the lender, paid by the borrower ($500–1,500 SFR, $2,500–7,500 commercial). A low appraisal can kill or renegotiate a deal — always contract with an appraisal contingency.
Market & Valuation
Appraisal
A licensed opinion of a property's value based on comparable sales, income, and cost approaches.
More in Market & Valuation
- NOI (Net Operating Income)— Gross income minus operating expenses — excludes debt service, capex, and income taxes.
- Operating Expenses (OpEx)— Recurring costs of running a property — taxes, insurance, management, maintenance, utiliti…
- CapEx (Capital Expenditures)— Large periodic replacements — roofs, HVAC, water heaters, appliances — budgeted separately…
- Vacancy Rate— The percentage of time a rental is expected to sit empty between tenants.
- Cap Rate (Capitalization Rate)— NOI ÷ Purchase Price — the unleveraged annual yield of a commercial property.
- Cash-on-Cash Return— Annual pre-tax cash flow divided by the total cash you invested to acquire the deal.