If you have property that you want to sell, you must first know how much the value of your property is to attract potential buyers. In order to sell your property, you first need to get its proper appraisal.
If you are an investor in commercial property, the value of the property is important. If the owner values it at a price that is too high, then it can prevent the sale from taking place. If you value your property too low, then you will lose your 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. An appraisal of a land occurs because no two properties are identical and the value of all of them differs based on location. There is no use of any pricing mechanism in the common appraisals and for it to be properly done, you should seek an appraisal from an expert.
Appraisals should be performed by a licensed appraiser. There are times when the appraisal value is based on market assessment and the highest and best use of the real property. The appraiser using a standardized report form to submit his appraisal. 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 approach is usually used on newer structures and less 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. Salary-based approach is used to value commercial and investment properties as it evaluates an income stream.
The techniques vary greatly with each other, and because of this the technique used will depend on what type of asset you have. 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. It is always beneficial to get appropriate appraisal with expert advice.