COMMERCIAL REAL ESTATE APPRAISAL
“We Value Colorado”
Colorado Commercial
Real Estate Appraiser
The commercial real estate appraiser you choose to work with is an important decision. Some important factors when considering a commercial real estate appraisers can include the following.
- A property appraiser who is experienced in the appraisal of different real estate types and specifically properties similar to the property you will have appraised.
- A local commercial appraiser with experience appraising commercial property in the local market and broader experience completing commercial appraisals in other markets has the real estate perspective to provide the correct context.
- A Colorado commercial appraiser engaged to complete a Denver commercial property appraisal has a much broader understanding of the Colorado real estate market if they have also completed commercial property appraisals in Fort Collins, Colorado Springs, Grand Junction and the many other markets within the state. An experience commercial real estate appraiser can often identify factors that could be overlooked.
- A Certified General Appraiser who understands that appraising commercial properties requires custom tailoring appraisals to meet the precise property appraisal need of the client. Commercial appraisal services offering different types of commercial real estate appraisals offers better suited options.
A real estate appraisal provides an answer to a question. Working with a commercial appraiser with the correct real estate perspective to provide the right answer is essential.
Appraisal Expertise
Phil McDonald is a highly trained commercial real estate appraiser who combines his experience, education and expansive real estate knowledge to provide professional valuation services. Recognized as a real estate expert in courts across the state, Phil holds a master’s degree in real estate and has an outstanding 25 year track record in the Colorado real estate market.
Colorado Real Estate Valuation Expert
Phil McDonald is recognized as a residential and commercial real estate expert in several state and federal courts. He has either provided real estate expert witness testimony or been involved as a real estate expert in cases in the following courts:
- Denver County commercial and residential real estate cases involving purchase disputes, tenant disputes, divorce appraisals, and partnership dissolution.
- Arapahoe County cases involving home appraisal, industrial property, apartment appraisal and other Colorado commercial real estate for divorce cases.
- Boulder County commercial real estate valuation of office property, retail property and subdivision analysis for cases involving tax dispute, adverse possessions, and divorce settlements.
- Adams County divorce cases involving commercial real estate and house appraisals.
- Broomfield County divorce cases involving the division of residential property.
- Jefferson County cases involving the appraisal valuation of commercial real estate and residential appraisal services for divorce settlement. Cases also involved land appraisals and valuation of retail properties and special use real estate for eminent domain.
- El Paso County cases involving commercial real estate appraisal service for division of asset cases.
- Pueblo County industrial property valuation for cases involving pledging of assets.
- U.S. Federal Court commercial real estate services for cases involving bankruptcy
An experienced expert witness and diligent Colorado commercial real estate appraiser who provides defensible well supported valuations, Phil McDonald is the right choice for litigation assignments.
Get Your Commercial Property Appraised
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Call Us
Call us to discuss your specific appraisal needs and deadlines so that we can custom tailor the best appraisal option to meet your specific needs.
Get a Bid
After discussing your specific appraisal needs, we will provide you with a bid and turnaround time that allows you to meet your deadlines.
Appraisal Bid Request
Engage Us
When you engage us to complete your appraisal assignment you can count on having a credible and supported value conclusion deliver in the agreed upon time frame.
Denver Commercial Real Estate Appraisal Coverage Area
We service the entire Denver metro area from our Denver real estate appraiser’s office. Our commercial appraisal services include all commercial real estate property types, including, but not limited to: Office, retail, industrial, apartment buildings, multi-family properties, hotels, land, special use, and mixed-use. Visit our Past Commercial Appraisal Assignments page to see a complete list of all commercial real estate types and sub-types we have appraised in the Denver commercial real estate market.
These are the primary Colorado counties and cities we serve from our Denver office.
Our Adams County Commercial Appraisal Services including the following cities: Aurora, Brighton, Commerce City, Federal Heights Northglenn, Thornton and Westminster.
Our Arapahoe County Commercial Real Estate Appraisal Services include the following cities: Aurora, Centennial, Englewood, Glendale, Greenwood Village and Sheridan
We provide commercial real estate appraisal services in Broomfield County from our Denver commercial real estate appraisal office and from our Boulder Commercial Appraisal office.
Our Denver County Commercial Appraisal Services include the following cities and areas: Denver, Cherry Creek, and Cherry Hills.
Our Commercial Appraisal Services in Douglas County include the following cities: Castle Rock, Larkspur, Highlands Ranch, Lone Tree and Parker. We also provide commercial and residential appraisal services in some areas of Douglas County from our Colorado Springs real estate appraiser’s office. These areas include Castle Rock and Larkspur.
Our Jefferson County Commercial Appraisal Services include the following cities: Arvada, Conifer, Edgewater Evergreen Golden Lakewood, Littleton, Morrison and Wheat Ridge.
We provide statewide coverage for Colorado commercial real estate appraisal services from four real estate appraisal offices along the Colorado Front Range. We provide residential appraisal services in southern Colorado from our Colorado Springs real estate appraisal office and Pueblo real estate appraisal office.
The One Thing to Ask When Selecting an Appraiser
I have appraised over 2,000 properties and still each new valuation assignment is a new puzzle to be solved. While I may have experienced most unique characteristics of properties and factors having an impact on value, every assignment is unique. The impact on value of a significant factor can be very different for different properties with different characteristics. I enjoy solving the puzzle and supporting every conclusion with market data.
If you would like to skip the long narrative and just get to the one thing to ask, click on this link to be taken to the bottom of this section about selecting the right commercial property appraiser.
Model Based vs. Market Based Appraising
A significant difference among commercial real estate valuations is model based vs. market-based appraising. While I utilize financial models, statistical analysis, formula and equation-based analysis and other methods utilized in model-based appraising I never reach a conclusion based on a model. Models provide indications and support for conclusions. However, every conclusion must be reached and primarily supported with actual market data. This is an important factor when selecting a commercial appraiser and one which is not often considered.
Most real estate experts utilize both models and market data. The distinction is how they use each of these and what they use to support conclusions. If they support adjustments, derive capitalization rates and reach other conclusions through the use of models, then they are practicing model-based appraising.
Model Based Appraising is Acceptable
Model based appraising has been practiced for over a century and is a well-accepted valuation method. Real estate professionals have different opinions on model-based vs market-based appraising and each side may have valid points to be considered.
You may be wondering why I hold firmly that every value conclusion must be market based, if model-based appraising is acceptable. I am very pragmatic, so my reasons are very simple. People (all people) understand market-based conclusions, few people understand model-based conclusions, and market-based conclusions are almost always more accurate.
Model based appraising was the standard for decades because market data was difficult to obtain. Since the information age, market data is abundant. The reason (lack of market data) to use model based appraising techniques to support conclusions no longer exists. However, it is still very common to reports supporting conclusions with models instead of market data.
Lead the Reader to The Same Logic Conclusion
As a seasoned expert witness having provided expert witness testimony related to real estate in many cases, I have had the opportunity to witness firsthand how market-based appraising is understood by all people and model-based appraising is not.
Generally, when providing expert witness testimony, I am asked to wait outside of the courtroom until I am called to testify. On occasion I have been asked to sit in the courtroom and have watched the testimony of the commercial appraiser providing expert witness testimony for the opposing side of the case. Watching an expert witness attempt to explain model-based conclusions to a jury and/or a judge provides the most glaring evidence why model-based appraising should not be utilized to
support valuation conclusions. Typically, the eyes of the jurors glaze over, and they are straining to pretend to listen. Judges don’t need to pretend to pay attention and they can be a bit more obvious about not paying much attention.
Some people do not understand math very well and those who do understand math may still have difficulty fully understanding how a conclusion was reached based on a model. It is impossible to lead the reader of a property appraisal report to the same logic conclusion the preparer of the report reached when the reader is not understanding the analysis presented in the report.
In regards to court testimony, many attorneys and judges are very smart people who often have a liberal arts background and not a math background. They understand logic, they may not understand math/models.
Market data is understood by everyone and provides the most defensible support for a commercial real estate appraiser’s conclusion. My testimony in court is very different than the testimony which tries to explain a valuation model. I support every conclusion with market data, I present the market data and the discussion which will allow the reader to reach the same logical conclusion. Market data is not perfect but utilizing the best market data available often results in the most accurate conclusion. My confidence level supporting a conclusion with market data is always very high because I know that I was diligent in my research, uncovered everything available and am supporting conclusions with the best market data available
Market data is understood by everyone and provides the most defensible support for a commercial real estate appraiser’s conclusion. My testimony in court is very different than the testimony which tries to explain a valuation model. I support every conclusion with market data, I present the market data and the discussion which will allow the reader to reach the same logical conclusion.
Market data is not perfect but utilizing the best market data available often results in the most accurate conclusion. My confidence level supporting a conclusion with market data is always very high because I know that I was diligent in my research, uncovered everything available and am supporting conclusions with the best market data available
The Litmus Test of a Market Based Appraiser
Market based appraising is so good that even some who are supporting conclusions based on models may claim to be market-based. However, there is a very easy way to find out if the professional you are considering is really a market-based appraiser.
Paired Data Analysis
Paired data analysis is a fundamental method of extracting and supporting adjustments. The concept of paired data analysis is very simple. You have two identical properties with only one difference, and they have sold at a different price. Therefore, it can be concluded that the value of that one difference is reflected in the difference in price since the properties were otherwise identical.
Unfortunately, almost every real estate introduction class which presents this technique also dismisses this technique as not being practical which then leads unwitting apprentices towards model-based appraising instead of actually learning the principles and correct application of paired data.
Because in the real world there are never two properties which are identical in every way with the exception of a single element, this foundational technique is often dismissed, and many never seek the education required to fundamentally understand this technique. Because the basic description, as I provided above, is very simplistic some fail to recognize that it is an illustration of an underlying principle that differences in the elements of a property has a quantifiable impact on value and that the market recognizes these differences in terms of price.
While many have wrongfully dismissed paired data analysis, almost every authoritative source in the real estate appraisal industry indicates that paired data analysis is the preferred technique to support adjustments. Education authorities, government regulators, and institutional users of appraisal reports who publish guidelines all indicating that paired data analysis is the preferred technique, got my attention. As a result, I have studied paired data analysis extensively, understand the foundation of the technique, and correctly apply it in every assignment that I complete.
Selecting The Right Appraiser
This section of our home page may appear to be more appropriate as a blog post than a section of our home page. However, this page is about selecting the right professional to complete the evaluation of a commercial property. It is my expectation that a description of fundamental differences in commercial real estate valuation can help you select the right practitioner.
The important thing to know is that every authoritative source in the appraisal industry indicates that paired data analysis is the preferred technique to support adjustments. As such, the right appraiser isa market-based and supports conclusions with market data utilizes paired data analysis.
When interviewing commercial appraisers, just ask them if they support adjustments using paired data analysis. If they don’t then you may conclude that they know more than all of the authoritative sources and decide to hire them.
Alternatively, just give us a call and you can count on a well-supported, market-based property appraisal utilizing paired data analysis which will provide you with the correct answer to the question of how much your commercial property is worth.
Selecting The Right Appraiser
This section of our home page may appear to be more appropriate as a blog post than a section of our home page. However, this page is about selecting the right professional to complete the evaluation of a commercial property. It is my expectation that a description of fundamental differences in commercial real estate valuation can help you select the right practitioner.
The important thing to know is that every authoritative source in the appraisal industry indicates that paired data analysis is the preferred technique to support adjustments. As such, the right appraiser isa market-based and supports conclusions with market data utilizes paired data analysis.
When interviewing commercial appraisers, just ask them if they support adjustments using paired data analysis. If they don’t then you may conclude that they know more than all of the authoritative sources and decide to hire them.
Alternatively, just give us a call and you can count on a well-supported, market-based property appraisal utilizing paired data analysis which will provide you with the correct answer to the question of how much your commercial property is worth.