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.
If you are an investor in commercial property, the value of the property is important. If the property value placed by the owner is too high, then there is no sale that will take 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.
If you want to find out the market value of your commercial property, there are many ways of appraising it. 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.
A licensed appraiser performs the appraisals. 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. 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 cost approach suggests that the value of the property is equal to adding up the value of the land minus any needed improvements. This approach is usually used on newer structures and less 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. Compared to the other approaches, the sales comparison approach is very objective. Salary-based approach is used to value commercial and investment properties as it evaluates an income stream.
The appraisal method used is dependent of the type of asset you have in the property. When appraising skyscrapers, then the income approach is used, but if you are appraising retail or office building, the sales comparison approach is used. 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. An appropriate appraisal with expert advice is always beneficial.