Because of their rigorous training, professional skills and expertise, and the code of ethics to which they must adhere, commercial real estate appraisers are considered expert witnesses, and are permitted to be called to testify in court on certain property issues.
Information on what the value of a property is to a property owner or to a tenant requires two different reports. The former results in is a “leased fee interest” appraisal, while the latter delivers a “leasehold interest” appraisal.
In addition to taxation, property transfer, and other business purposes, commercial real estate appraisals are needed for divorce proceedings when the property in questioned is owned and subject to community property and division of estate laws.
If you feel like your commercial property is being taxed more than it should, one of the things that you can do is to have it professionally appraised. The value derived can then be compared with what the city has on record to see if you qualify for lower rates.
One of the techniques that a professional valuator can use when appraising a commercial property is the cost approach. This method takes into account the amount that was spent on acquiring and improving the property but does not consider the future revenue that can be generated from it.
Letter (Restricted use) reports are appraisals structured for the benefit of clients who are already familiar with the area, and the scope of supporting data is minimal. This report contains a property description, appraisal purpose, type of value requested, the date, value opinion, and signature of the appraiser.
In addition to conducting the appraisal itself, a commercial real estate appraiser can provide you with other valuable information, including data on local conditions that affect the real estate market in their area.
If you and your siblings are heirs to a commercial property owned by your folks, it would be a good idea to have it professionally appraised before you dispose of it. Knowing what it's realistically worth will allow you to decide on a course of action that will be best for everyone involved.
In commercial property valuation, what is the sales comparison approach? This is a method that takes into account the sales data of very similar properties. However, in order for figures to be accurate, the properties being compared should be well-matched and should be in the same market area.
All commercial real estate appraisers are required by law to adhere to the Uniform Standard of Professional Appraisal Practice. This is your assurance that you will receive a report that is unbiased and accurate and that the information is confidential.
A commercial real estate appraisal can also aid in issuance of stock, corporate mergers, or revision of book value. It is also often conducted to help with business dissolutions.
Because of their rigorous training, professional skills and expertise, and the code of ethics to which they must adhere, commercial real estate appraisers are considered expert witnesses, and are permitted to be called to testify in court on certain property issues.
A commercial real estate appraisal can also be used to counsel a client on commercial property investment matters, such as goals, resources, alternatives, timing, and constraints.
Location is everything when it comes to commercial real estate. Commercial estate provides returns in two ways - rent and capital appreciation. Both are heavily dependent on the location.
Commercial real estate, if purchased carefully, is always a good investment. This is because it provides stable cash flow in the form of rent. If you’re also looking to invest in a commercial property, contact us for appraisal.
What is a restricted-use appraisal report? This type of report only states the conclusions of the appraisal. The restricted report is the shortest and least expensive type of appraisal report that can only be used by the client.
What does real estate analysis take into account? It takes into account four factors: desire, scarcity, utility, and effective purchasing power. Analysis forms an important part of the real estate appraisal process.
Like residential properties, supply and demand are the two main factors that drive commercial real estate prices. Prices climb if there are more people trying to start businesses in a particular location than available commercial properties.
John Jacob Astor once said, “Buy on the fringe and wait. Buy land near a growing city! Buy real estate when other people want to sell. Hold what you buy!”
A commercial real estate appraisal can be conducted to help prospective sellers determine acceptable selling prices, or prospective buyers decide on offering prices. It can also help support lease negotiations.
A high-quality commercial property is sure to fetch you higher rent than the low-quality property at the same location. It also assures better tenant retention and higher capital appreciation.
Federal regulations enacted in response to the savings and loan crisis of the early 1990s set rigorous standards for appraisers. Called the Uniform Standards of Professional Practice, they must be followed by state licensing agencies when licensing appraisers.
In order for us to complete an accurate appraisal, we will need your sales contract, any previous appraisals, mortgage information, a property tax statement, a building inspection report, blueprints, a floor plan, and a list of improvements, among other documents.
Commercial real estate appraisals can be current, retrospective, or prospective, and the difference can be important. Current appraisals reflect the day(s) the appraisal was conducted; retrospective appraisals reflect a past date; prospective appraisals are based on a future date.
Keep in mind that the party that orders the appraisal is the sole client of the appraiser. As such, the information in the appraisal is released only to the client and to those whom the client indicates, no one else.
If you think you need a change of scenery, do not relocate your business just for the sake of moving. Consider why you want to relocate, how the move can be of benefit – now and in the future, and what the benefits and drawbacks are to moving or staying put.
In addition to taxation, property transfer, and other business purposes, commercial real estate appraisals are needed for divorce proceedings when the property in question is subject to community property and division of estate laws.