In order to attract potential buyers to the property that you are selling, it is good to first know how much the value of your property is. A proper appraisal of your property is important before you sell it.
Valuing commercial property is important to an investor. If the owner values it at a price that is too high, then it can prevent the sale from taking place. On the other hand, if the property value if too low, the seller will lose out on a potential profit. You need commercial appraisal if you want to know the real value of your commercial property.
Appraising commercial property market value can be done In many ways for a piece of property. Some property owners hire two appraisers so that he can compare their individual evaluation. Some professional appraisers just use an opinion of the value of property. There needs to be land appraisal since not all properties are the same and the value of one different based on location. This type of opinion appraisal does not use any pricing mechanism so it is important that to properly appraise real estate, an expert appraisal should be done.
A licensed appraiser performs the appraisals. Market assessment and the highest and best use of the real property is sometimes the basis of the appraisal value given by the appraiser. When an appraisal is reported it is on a standardized report form. The appraiser will submit a narrative report if the piece of property is complex with many unusual characteristics.
The cost approach, sales comparison, and the salary-based approach, are three methods for assessing property. With the cost approach, the value of the property is determined by subtracting any improvement from the value of the land. IF the structure is new, the cost approach of appraisal is used and this is not used so much on older structures. When using the sales comparison approach, the price per unit of land similar to other appraisal amounts of similar properties in the market place are compared. This approach is the most objective of the three approaches and allows the appraiser very little leverage. Income stream evaluation is used for the salary -based approach to appraising the value of commercial and investment properties.
The appraisal method used is dependent of the type of asset you have in the property. The income approach is used to appraise investment properties like skyscrapers, but the sales comparison approach can be used to appraise retail of office buildings. Sales comparison is also used for appraising apartment buildings. It is best to get an expert appraisal of your property before selling it.
Determining accurate commercial property market value is crucial in this buyer’s market. Make sure that you get an accurate appraisal from an expert for the property that you will buy.