Written by CoStar News | July 19, 2017
Responding to investor and lender concerns regarding the time and costs associated with completing smaller real estate transactions, the Federal Reserve Board, the Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency today proposed raising the sale price threshold for commercial real estate transactions requiring an appraisal to more than $400,000 from the current level of $250,000.
The banking agencies proposed the sale-price threshold for residential real estate transactions should remain unchanged.
The agencies believe raising the threshold for commercial property sale transactions will significantly reduce the number that require an appraisal, while not undermining the safety and soundness of financial institutions.
The FDIC estimates that 17% of all current CRE property sales currently fall below the $250,000 threshold and do not require loan appraisals. Moving the threshold to $400,000 would increase that percentage of sales not requiring appraisals to 28%.
Bob Kirby, a commercial leasing and sales consultant with Saurage Rotenberg Commercial Real Estate, has over 37 years of sales and management experience. Licensed in Louisiana and Mississippi, Bob is a member of the Mississippi Commercial Association of REALTORS® (MCAR); the Greater Baton Rouge Association of REALTORS® Commercial Investment Division (CID); a candidate member of the Certified Commercial Investment Member Institute (CCIM); and an affiliate member of the National Association of REALTORS® (NAR) and NAR Commercial.
Saurage Rotenberg Commercial Real Estate is a member of the Baton Rouge Area Chamber of Commerce (BRAC); the West Baton Rouge Chamber of Commerce; the Baton Rouge Better Business Bureau; the Louisiana Commercial Data Base (LACDB); and the International Council of Shopping Centers (ICSC). Several agents, on an individual basis, are members of the Society of Industrial and Office Realtors® (SIOR), the Certified Commercial Investment Member Institute (CCIM); the National Association of REALTORS® (NAR); and the Greater Baton Rouge Association of REALTORS® Commercial Investment Division (CID).