FAQ

What are recent trends impacting commercial real estate?

In 2024, higher interest rates exert the most significant influence on commercial real estate values. The Federal Reserve’s actions constrain the purchasing power of buyers. These higher rates  manifest in elevated capitalization rates in the upcoming year. However, they also present appealing opportunities for cash buyers to secure properties at more attractive prices.

For recent market reports, offering essential market data and insights into the commercial real estate landscape, please visit the Market Trends tab on our website. At Ferguson Appraisals, we maintain a keen awareness of trends spanning various markets and remain attuned to prevalent investor concerns.

Should you wish to engage in a free consultation or discuss current real estate trends, please contact Dustin Ferguson. We want to emphasize that our aim is to meet the specific objectives of each client without any obligation or sales pitch. Rest assured that if your goals do not require an appraisal, we won’t persuade you to order anything unnecessary.

We appraise commercial, multi-family, industrial, agricultural and complex residential real estate. We are able to provide limited tangible personal property, FF&E (Furniture, Fixtures and Equipment) and business valuations in a variety of industries (Please call for details). In addition to valuation services, Ferguson Appraisals offers appraisal review services.

The cost of a typical commercial appraisal can vary substantially, contingent upon factors such as the project’s scope, report complexity, and the required time for completion. In broad terms, commercial or industrial appraisals generally fall within the range of $2,000 to $8,000 and residential appraisals are typically in the range of $700 to $1,500. Appraisals for vacant lots vary considerably, depending on the scope of the assignment and physical attributes of the land.

It is essential to note that commercial appraisal fees appear comparatively costly when contrasted with a residential appraisal range, but the level of expertise, depth of analysis, and time invested in a commercial or industrial appraisal far surpass those of a standard URAR residential report. Furthermore, not all commercial appraisers produce equivalent results. The depth of knowledge and years of experience shines in our appraisal reports, compared to many of our peers, which often have inexperienced or trainee appraisers conducting much of the work. This will not happen using Ferguson Appraisals, as Dustin Ferguson completes every assignment with care and expertise.

At Ferguson Appraisals, LLC, we are committed to delivering top-tier residential and commercial appraisals at a fair and competitive price, consistently achieving early or on-time delivery.

A skilled certified general appraiser typically completes a commercial appraisal within a timeframe ranging from 5 days to two weeks. Residential appraisals may be completed in one day to five days. However, the waiting period for your appraisal can vary based on factors such as the assignment’s scope of work and the volume of concurrent reports in our office. Under normal circumstances, this waiting period can extend from 2 weeks to 8 weeks. It’s important to note that seasonal fluctuations in demand can significantly affect this timeline. As part of engaging the appraiser, we will establish an anticipated completion date.

USPAP or (Yoos-Pap) stands for the Uniform Standards of Professional Appraisal Practice. These standards are the governing law and guidance book for appraisers. The standards are published and maintained by the Appraisal Standards Board (ASB) of the Appraisal Foundation. Every licensed appraiser is required to know and follow the statements, standards and adhere to advisory opinions of USPAP. According to the preamble of the latest USPAP Edition, “The purpose of the Uniform Standards of Professional Appraisal Practice (USPAP) is to promote and maintain a high level of public trust in appraisal practice by establishing requirements for appraisers. It is essential that appraisers develop and communicate their analyses, opinions, and conclusions to intended users of their services in a manner that is meaningful and not misleading. The Appraisal Standards Board promulgates USPAP for both appraisers and users of appraisal services. The appraiser’s responsibility is to protect the overall public trust and it is the importance of the role of the appraiser that places ethical obligations on those who serve in this capacity. USPAP reflects the current standards of the appraisal profession.”

Source: National USPAP Manual, Preamble

Ferguson Appraisals provides commercial appraisal services throughout specific counties in Colorado, South Dakota and Wyoming. The following counties make up our primary coverage area: Colorado Counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Gilpin, Grand, Gunnison, Kiowa, Lake, Larimer, Logan, Mesa, Morgan, Park, Summit, Teller and Weld. South Dakota Counties: Butte, Custer, Fall River, Harding, Lawrence, Meade, Pennington, Perkins and Shannon. Wyoming Counties: Albany, Campbell, Converse, Crook, Laramie, Niobrara and Weston

While Ferguson Appraisals has extensive competency and experience in the counties listed above, we may also be able to provide services in other markets. Limited residential appraisals are also conducted in Lawrence, Meade and Pennington counties of South Dakota on a case by case basis. Please request a quote for confirmation on whether we can assist.

The concise answer to this question is, “It depends.” At Ferguson Appraisals, LLC, we ensure our clients achieve their goals and address their real estate requirements, even if it means referring the work to another specialized appraisal firm or brokerage.

For obtaining an accurate opinion of market value for a commercial asset and addressing complex valuation needs, hiring an appraiser with an MAI designation is usually the most advisable course of action. For instance, Ferguson Appraisals, LLC frequently conducts appraisals for brokers to establish listing prices for commercial or complex residential properties. While many brokers excel in marketing and possess a profound understanding of the buying and selling process, obtaining an appraisal offers assurance to property owners and brokerages that they are maximizing their property’s value.

It also instills confidence in prospective buyers, assuring them they are making a prudent financial decision at a fair price. Although appraisals are traditionally initiated by lenders, a preliminary restricted or full narrative appraisal often simplifies the negotiation process significantly. Conversely, if the property is relatively straightforward or if you already possess an appraisal and are prepared to buy or sell, a broker is likely the most suitable choice.  Engaging a specialty broker with their knowledge and expertise often results in representing your best interest.

As a former broker, Dustin Ferguson will provide answers to real estate questions. Please call 605-340-5407 or dustin@dustinferguson.com and Dustin gladly provide you with impartial information to assist you with your needs.