Inaccurate CRE Appraisals
The New York Times cites a report by KC Conway of Colliers International showing that commercial real estate appraisals are consistently inaccurate.
Of the 2,076 properties studied, 64 percent were appraised above the sale price by a total of $1.4 billion and 35.5 percent were appraised below the sale price by a total of $661 million. In 121 cases, the appraised value was more than double the sale price, and in 132 cases, the appraisal was less than 70 percent of the sale price.
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Last Updated on May 8, 2012 by Ramin Seddiq