When a business person starts thinking about selling their establishment, they will want to know how much is worth. This is important to make sure that the business person gets the most for the structure as they can. Most businesses get a commercial property appraisal done to determine what the land and building are worth in the current real estate market. Another reason to have the place appraised is if the business owner is applying to a bank to borrow money and they are going to use the structure as the collateral for the loan. The report an appraiser develops normally include some of the following information.
The first thing a lender will want to know before they lend businesses money on their property is the qualifications of the person generating the report. The will want to know what sort of training and certifications the report maker has obtained in this field. A lender will usually want to be assured that the appraiser does not have any personal interest in the lending transaction. This information is generally presented at the beginning of the report.
Another section in the report will explain the aspects of the building and land. Important aspects that people will care about is how big the building is and what it offers. A buyer may want to know about truck docks and warehouse space. Is the building in good shape or will it need a lot of work will often be answered in the summary about the structure.
One cannot usually state what a piece of property is worth without considering the properties nearby. One of the ways a value is determined is by looking at similar properties in the area that have sold within the past couple of years. The time line will often reflect what the real estate market looks like at that point in time and help one to understand what a commercial building of similar scale will sell for at that time.
An appraiser will often include a section in their report that lists the properties that used in their comparison. They will explain why they chose those particular places. This helps a person understand what the appraiser was thinking when they placed a value on their buildings and land.
The comparable lands can be a basis to dispute findings. Sometimes a business owner will disagree on the value of his real estate. When the business owner learns who other properties were used, they might be able to ask for reconsideration if they can present other examples of properties that sold for more than the assessment.
Other information useful to figuring out the worth of buildings and land should be supplied. A warehouse located near highways and rail lines might be worth more than the same type of structure located deep in the inner city. Easy access to markets and customers can add value to a building.
Knowing the value of the real estate one owns can help to set a listing price if they want to sell it. Another reason is to help a business leverage their land when they are trying to secure funding and using the land as the basis for a loan. A commercial property appraisal will let everyone know what the perceived value of the land is in the current real estate market.
The first thing a lender will want to know before they lend businesses money on their property is the qualifications of the person generating the report. The will want to know what sort of training and certifications the report maker has obtained in this field. A lender will usually want to be assured that the appraiser does not have any personal interest in the lending transaction. This information is generally presented at the beginning of the report.
Another section in the report will explain the aspects of the building and land. Important aspects that people will care about is how big the building is and what it offers. A buyer may want to know about truck docks and warehouse space. Is the building in good shape or will it need a lot of work will often be answered in the summary about the structure.
One cannot usually state what a piece of property is worth without considering the properties nearby. One of the ways a value is determined is by looking at similar properties in the area that have sold within the past couple of years. The time line will often reflect what the real estate market looks like at that point in time and help one to understand what a commercial building of similar scale will sell for at that time.
An appraiser will often include a section in their report that lists the properties that used in their comparison. They will explain why they chose those particular places. This helps a person understand what the appraiser was thinking when they placed a value on their buildings and land.
The comparable lands can be a basis to dispute findings. Sometimes a business owner will disagree on the value of his real estate. When the business owner learns who other properties were used, they might be able to ask for reconsideration if they can present other examples of properties that sold for more than the assessment.
Other information useful to figuring out the worth of buildings and land should be supplied. A warehouse located near highways and rail lines might be worth more than the same type of structure located deep in the inner city. Easy access to markets and customers can add value to a building.
Knowing the value of the real estate one owns can help to set a listing price if they want to sell it. Another reason is to help a business leverage their land when they are trying to secure funding and using the land as the basis for a loan. A commercial property appraisal will let everyone know what the perceived value of the land is in the current real estate market.
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