Federal agencies are considering raising the threshold for commercial real estate transactions requiring an appraisal from the current level of $250,000 to $400,000. The agencies including the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency have stated that they believe raising the floor will greatly reduce the number of transactions that require an appraisal and save costs and expenses in these transactions. The proposal requires that commercial real estate transactions at or below the threshold receive an “evaluation” which are less detailed than appraisals and do not require completion by a state licensed or certified appraiser.
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