Posted by Dave T on May 24, 1999 at 01:13:00:
Perhaps your commercial lender did not explain their lending guidelines completely. Usually, a bank commercial loan will only be for a maximum of 80% of the purchase price, or 75% of the appraised value, whichever is less. Bank commercial lenders do not usually make loans for a percentage of the appraised value, but rather they loan a percentage of the purchase price.
In this context, the banker who says that the appraisal is not considered, really means that the appraised value is not (usually) the basis for the loan amount.
By the way, commercial appraisals are more complicated than residential appraisals and the higher costs reflect the additional research that must be performed. $1500-$2000 for a commercial appraisal is consistent with my experience.