Happy Friday friends, here’s a fun fact:
A new federal rule doubled the threshold (to $500,000) for commercial real estate deals requiring an independent appraisal. This will reduce the time, cost and regulatory burden associated with processing smaller real estate deals.
Deregulation is a major theme of the Trump Administration and this updated regulation is a smart move. Moving the sale threshold up to $500,000 creates very little additional risk to the system.
Although the property sales total affected by this rule change is a drop in the bucket compared with overall commercial property volume, the cost savings are noteworthy. For example, we estimate appraisal costs at between $2,000 and $4,000 per transaction.
About 32% of sales will be exempt from the appraisal requirement.
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About Beau Beach, CCIM
Beau is an elite Investment Real Estate Broker, Forbes contributor, author, investor and adoring father of four. His clients appreciate his no-nonsense demeanor and his legendary work ethic.
Beau leads Prowess IRES which specializes in selling investment real estate for the absolute highest price the market will pay…in the Milwaukee, Nashville, Chicago and South Florida markets.
He’s the author of the books The 3 Reasons: Why Most Commercial Properties Don’t Sell and True Wealth: What Every Seller Should Know About 1031 Exchanges.
Beau can be reached by phone, scheduled call or Beau@ProwessIRES.com