🏢 Real estate appraisals follow rules. Business valuations require judgment.

That’s why:

• FMV (fair market value) for a building can be +/- 2%
• FMV for a business might swing 20–30% depending on assumptions

Appraisers must justify every step. But subjectivity is built into valuation—because businesses are messy.

SBA lenders need to understand both sides of the coin.