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.
It is very important for an investor to value commercial property. If the owner values it at a price that is too high, then it can prevent the sale from taking place. If you give a very low value to your property then your potential profit will be lost. IIs is through commercial appraisal that a commercial property is evaluated.
Appraising commercial property market value can be done In many ways for a piece of property. In order to compare different appraisals, some commercial property owners hire two appraisers at the same time. Most professionals appraise a piece of land by developing an opinion of the value of property. An appraisal of a land occurs because no two properties are identical and the value of all of them differs based on location. Since appraising a property’s value does not always use a market-based pricing mechanism, an expert appraisal of the real estate is needed.
Appraisals should be performed by a licensed appraiser. Many times the appraiser bases his opinion on market assessment and the highest and best use of real property. 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 types of methods used in appriaising property are the cost approach, the sales comparison or the salary-based approach. The cost approach suggests that the value of the property is equal to adding up the value of the land minus any needed improvements. This appraisal method is used for new structures and not so much on older structures. The sales comparison approach evaluates the price per unit area of land similar to other appraisal amounts of similar properties in the marketplace. 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. Appraisals of investment properties such as skyscrapers may be subject to the income approach, whereas retail or office buildings may be subjected to the sales comparison approach. Sales comparison is also used for appraising apartment buildings. Get an expert appraisal for your property before selling it.
Determining accurate commercial property market value is crucial in this buyer’s market. It is always beneficial to get appropriate appraisal with expert advice.