A Commercial Real Estate Appraisal is an unbiased opinion of the value of properties like multifamily housing units, office buildings, and retail spaces. Commercial Appraisals are needed in the context of financing, business combinations, division of property, lease analysis, impairment analysis, liquidation valuation, valuation for financial reporting, refinancing and determination of purchase price.

Appraisals are used to determine what a property may sell for in the current market, and are also important in underwriting. Lenders generally will not lend more than an asset is worth  -- an appraisal helps lenders determine how much financing they can safely provide.

An appraisal is also a useful tool from an investing perspective. Before you purchase an asset, an appraisal can give you an idea how much you should be willing to pay for the asset in the current market. For assets in your portfolio, an appraisal can help you decide what sort of improvements will add value to the property.