Commercial Refinance: Match the Appraisal Basis to the Proposed Advance

By Don McClain | Founder & Principal, Medro Advisors Before comparing commercial refinance proposals, ask which value basis the provider recognizes. Current as-is and prospective completed or stabilized values answer different questions under federal banking-agency guidance. Record the effective date separately from the report date, plus improvements, leasing assumptions and review conditions behind the proposed advance. Future value does not establish cash available today. If conditions changed, ask the provider and appraiser what review is needed; do not alter the appraisal to fit the request. The guidance concerns regulated institutions, not universal terms. Discuss CRE capital preparation: https://www.fastcommercialcapital.com/