{"ok":true,"canonical_url":"https://dealroom.so/glossary/real-estate-appraisal","api_url":"https://dealroom.so/api/public/glossary/real-estate-appraisal","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"real-estate-appraisal","term":"Real Estate Appraisal","group":"Reading the business","definition":"A professional valuation of real property, required if real estate is part of the deal or used as collateral. It tells you the market value of the property, which impacts the loan amount and collateral coverage.","what_it_means":"If the business owns commercial real estate, or if you're using your own real estate as collateral, the SBA lender will require an independent appraisal. This ensures the property's value justifies its role in the loan's collateral. Review it closely to confirm the valuation makes sense and aligns with your understanding of the asset.","url":"https://dealroom.so/glossary/real-estate-appraisal","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"owner-occupied-commercial-real-estate","term":"Owner-occupied commercial real estate","url":"https://dealroom.so/glossary/owner-occupied-commercial-real-estate"},{"slug":"fair-market-value","term":"Fair market value","url":"https://dealroom.so/glossary/fair-market-value"},{"slug":"appraiser","term":"Appraiser","url":"https://dealroom.so/glossary/appraiser"}],"related_questions":[{"question":"When is an independent appraisal required for non-real estate business assets being acquired?","url":"https://dealroom.so/sba-7a/questions/when-is-an-independent-appraisal-required-for-non-real-estate-business-assets-being-acquir"},{"question":"What specific documentation is required to verify equity from a borrower's personal real estate appraisal?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-to-verify-equity-from-a-borrower-s-personal-real-e"},{"question":"What type of property appraisal is required if my $1.2 million SBA loan includes commercial real estate?","url":"https://dealroom.so/sba-7a/questions/what-type-of-property-appraisal-is-required-if-my-1-2-million-sba-loan-includes-commercial"},{"question":"Is a separate appraisal required for real estate if it's a small percentage of the total acquisition?","url":"https://dealroom.so/sba-7a/questions/is-a-separate-appraisal-required-for-real-estate-if-it-s-a-small-percentage-of-the-total-a"},{"question":"What are the SBA's requirements for obtaining an independent appraisal of non-real estate business collateral for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-are-the-sba-s-requirements-for-obtaining-an-independent-appraisal-of-non-real-estate-"},{"question":"What are the specific triggers for a lender to obtain an independent appraisal of business real estate for a 7(a) loan, based on loan amount thresholds?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-triggers-for-a-lender-to-obtain-an-independent-appraisal-of-business"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Real Estate Appraisal","url":"https://dealroom.so/glossary/real-estate-appraisal","source_type":"DealRoom Data"}}