Commercial real estate appraisals are one of the most important aspects of the commercial real estate process. An appraisal gives you a professional estimate of a property's worth and can help you determine whether or not to buy, sell, or lease a property. Here's what you need to know.
What is a commercial real estate appraisal?
A commercial real estate appraisal is an estimate of the value of a piece of commercial real estate, usually performed by a professional appraiser. The estimate is based on a number of factors, including the appraiser's own experience and knowledge, as well as market data and other information about the property.
Why are commercial real state appraisals needed?
A commercial real estate appraisal is important because it provides an estimate of the value of a property, which can be used to make decisions about buying, selling, financing, and refinancing a property. Appraisals can also be used to resolve disputes about the value of a property and as evidence in bankruptcy cases.
What factors are considered in a commercial real estate appraisal?
There are many factors that can affect the value of a piece of commercial real estate, including:
- Location of the property. In commercial real estate as well as every other type of real estate, location is everything.
- Condition of the property. The condition of a property can have a major impact on its value.
- Size of the property. The size of a property, measured in square footage of both the land as well as any structures, can also affect its value.
- Age of the property. The age of a property can be a positive or negative factor, depending on the condition of the property and the desirability of its location.
- Zoning of the property. There are several different ways a commercial property can be zoned. The zoning of a property can impact its value greatly, depending on the types of businesses that are allowed in that zone.
- Improvements made. Improvements made to a property, like fencing or landscaping, as well as to the buildings, like renovations or additions, can also affect its value.
- Current market value of similar properties. One of the most important factors in determining the value of a piece of commercial real estate is the current market value of similar properties. This can be determined by looking at recent sales of similar properties in the same area.
How are commercial real estate appraisals done?
A commercial real estate appraisal is typically done by a professional appraiser. The appraiser will visit the property and take into account all of the factors that can affect the value of the property. The appraiser will also look at recent sales of similar properties to get an idea of the current market value. After the appraiser has gathered all of the necessary information, they will provide an estimate of the value of the property.
If you are interested in getting a commercial real estate appraisal, contact your bank, real estate agent, or local appraisal company today.