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. 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. A property owner will have a hard time selling his property if gives a very high value to it. If you value your property too low, then you will lose your potential profit. 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. There are many professional appraisers who appraise land by developing an opinion of the value of the property. There needs to be land appraisal since not all properties are the same and the value of one different 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.
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.
When assessing property, as appraiser will use either a cost approach, a sales comparison, or 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. Salary-based approach is used to value commercial and investment properties as it evaluates an income stream.
These three approaches to property y appraisal vary greatly from each other and the technique to be used is dependent on the type of asset you have. Appraisals of investment properties such as skyscrapers may be subject to the income approach, whereas retail or office buildings may be subjected to the sales comparison approach. Sales comparison is also used for appraising apartment buildings. Before you sell your property, make sure you get an expert appraisal for 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.