CRE Appraisals: Components, Approaches to Value & Cap Rates

Monday, June 24th, 2024 1:30 pm - 3:30 pm Central Time

A Program

Click Here to register for program $299.00

Click Here to register for program and receive recording $449.00

This program provides an overview of the key components of CRE appraisals and where bankers can find important information to assist in underwriting and understanding the sustainability of cash flow and the stability of the value of a property.

Commercial real estate (CRE) appraisals can be lengthy and very detailed. Want to navigate to key sections quickly? Want to understand key areas of lending focus (beyond the value conclusion), both in terms of reviewing the report and making use of its conclusions? As banks continue to deal directly with CRE loans as a major portion of their loan portfolios, plus indirectly through income-producing or rental real estate holdings that affect customers, it is important to understand the key sections of the report and terminology used. For example, there can be a critical difference between providing a value based on fee simple interest versus leased fee interest. Stepping away from all the rules and regulations, this program focuses on the “nuts and bolts” of the report itself.

What You'll Learn
  • Types of appraisals by format
  • Evaluating assumptions and limiting conditions
  • Property ownership interests clarified
  • Approaches to value
  • Cost approach and the underwriting and loan structuring process
  • Income approach options of discounted cash flow (DCF) and direct capitalization
  • Comparables and the key issue when using comps
  • Reconciliation of value


Richard Hamm has been training bankers for 28 years, designing and delivering courses specializing in commercial lending and credit, including portfolio and risk management, commercial real estate (CRE) and appraisals, plus selling and negotiating skills, and director training. He also conducts eight senior lender forums on a periodic basis in multiple states and one series at the national level.