Valuations: What is my Property Really Worth?

For some, “valuations” has become a bad word on the lending scene – but it doesn’t have to be. In reality, all loans are based on reasonably accurate property valuations, as they should be. Lenders, especially given commercial real estate’s cyclical nature, can’t and won’t make a loan based on inaccurate information. Their own financial security is at stake.
What do you have to do to make sure the information on a property is indeed accurate? First of all, make sure the borrower is aware of current values—and is able to prove it. Make sure those values are accurate and reflective of market conditions today and not based on five or 10 years ago, or even a year ago, for that matter. It’s critical that your information is correct.
Next, are there any other factors that are impacting property values in general, or that could impact values in the very near future, with the potential of changing the deal?
All parties involved, of course, have the right (possibly even the obligation) to hire a third-party appraiser. Kennedy Funding, with its substantial lending experience, understands the importance of a third-party appraisal – we often use some of the leading real estate appraisal firms and organizations.