As a business property owner, considering certain factors that can affect said property’s value before you buy or sell is always important. Naturally, this includes condominiums, apartments, industrial, office, retail, land, hotels/motels, car washes, restaurants and special purpose facilities such as concrete plants, gravel pits, greenhouses, etc. However, commercial real estate buyers and sellers have different needs than those in the residential market. So, if you’re wondering when to get an appraisal for a commercial property the answer is to do so before you sell.
If you’re new to ever getting a commercial property appraisal done here are a few things that will help you understand what they are and why they’re vital.
What Is a Commercial Property Appraisal?
When you get a commercial property appraisal or really any property appraisal is done, you’re paying for an evaluation of the market value of your property. Think of it as a super-detailed invoice that breaks down how much each aspect of your building is worth.
When Do You Get an Appraisal for a Commercial Property?
As already mentioned, property appraisals are a good idea to do before you sell your property to make sure you’re selling it for the right price. However, other common reasons to get a property appraisal include:
- Determining the property’s value for mortgage purposes
- Tax assessments
- Business dissolution
- Assess damages or help in corporate mergers
What Kind of Buildings Can Be Covered With a Commercial Property Appraisal?
Commercial property appraisals aren’t limited to any kind of commercial building. Any property that’s designated as a commercial one can be covered by a commercial property appraisal. Naturally, this includes:
- Condominiums
- Apartment buildings
- Industrial sites
- Shopping centres
- Commercial land for sale
- Office buildings
How Is a Commercial Property Appraisal Different From a Property Inspection?
While property inspections are used during the appraisal process, they are merely a piece of it. Inspections only cover the safety and quality of a building but aren’t allowed to mark a building’s value. Property appraisals (including commercial ones) assess ownership records, demographics, rental receipts, zoning records, and other factors to identify the property’s value in its entirety.
All Commercial Property Appraisals Are Verified
Commercial property appraisers take their job seriously since appraisals can be used in court cases. Property appraisals are therefore always written to be as accurate and detailed as possible to avoid any fact misinterpretation.
No matter the company you choose, all appraisals have to be done by a properly qualified appraiser. Thus, you can rest easy knowing you’re in good hands.