Knowing the value of your property is important before selling it in the property marketplace. A proper appraisal of your property is important before you sell it.
Valuing commercial property is important to an investor. A property owner will have a hard time selling his property if gives a very high value to it. On the other hand, if the property value if too low, the seller will lose out on a potential profit. 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. Some property owners hire two appraisers so that he can compare their individual evaluation. There are many professional appraisers who appraise land by developing an opinion of the value of the 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.
A licensed appraiser performs the appraisals. There are times when the appraisal value is based on market assessment and the highest and best use of the real property. When an appraisal is reported it is on a standardized report form. Appraising a complex property with unusual characteristics is done by using a narrative report for his findings.
The types of methods used in appriaising property are the cost approach, the sales comparison or the salary-based approach. The value of the property less the cost of improvement is the appraised value of the property using the cost approach. 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. Compared to the other approaches, the sales comparison approach is very objective. 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.
If you are buying commercial property, make sure that you know it’s accurate market value before buying. It is always beneficial to get appropriate appraisal with expert advice.