Commercial Property Appraisers

Often an heir inherits a portion of the estate when the owner passes. When this occurs, an estate tax applies to the transferred portion. The tax can only be levied if the estate value exceeds an exclusion limit set by state law. Estate taxes do not transfer to living spouses.

You can determine if you will have to pay estate tax by getting an appraisal. The appraisal determines the value of the property. Adding on other estate assets as well as deductions will determine the final valuation.

Next, you should compare this value to the current exclusion limit. Please visit the IRS for additional information.

Settling estates of the deceased is a difficult but necessary task. Determining the value of various estates requires a knowledgeable assessor. The date of the appraisal and the date of death are typically far apart. Because of this, we must use a special type of appraisal. A forensic retrospective appraisal establishes fair market value. Knowing the value of a commercial property helps to settle the overall estate.

As a buyer, you want to get the best deal possible. Obtaining a commercial property appraisal can help determine the real value of the property you want to purchase. This information gives you an edge when it comes to negotiations.
By knowing the real value, you can negotiate a fair price from the seller.

Sometimes, the seller may want to review the appraisal with you. This can be helpful in coming to a price amicably.

Disposition of property includes selling a company’s assets. Some companies must sell assets to cover bankruptcy debts or any other debts.
By using a commercial valuation, a business can better determine the value of their property asset. This results in more income from the disposition.

The more a company gets from disposition, the more it has to pay off debts.

Getting a commercial estimate can affect internal decisions within a business. Having an appraisal on a property in question will help many things. You can decide whether to rent or buy the property. You can determine the value of a renovation or new construction.

Getting a loan for a commercial property relies on an accurate valuation of the property. A lender takes many things into consideration when underwriting a loan.
One consideration is the Loan to Value (LTV) percentage. To calculate this, the lender needs the purchase price of the property.

A commercial appraisal must support the purchase price. If the appraisal shows a different amount, the lender will use the lower number.

The previous appraiser may have made mistakes when assessing the property. Or new regulations may have come into place since that appraisal was completed.
Having an inaccurate appraisal could result in undervaluing or overvaluing your property. This affects property taxes, rental fees, and other issues.

Making sure that your property is being correctly valued by the county can result in lower property tax assessments. We have successfully helped many commercial clients with their property tax appeals.
If you feel the previous appraisal was not accurate, contact a different appraisal team to conduct a new one.

Cost approach determines the value of a property based on how much it would cost to build the property.

Appraisers estimate the cost based on the replacement cost or the cost to construct the property. They make deductions based on external market factors, functional issues, and deterioration.

This analysis places value on a property based on the value of the others around it. Appraisers research the sales price of previously sold properties. They take this value and apply it to the property in question.

They adjust the price based on subject and comparable. This approach ties in with Comparative Market Analysis (CMA). Realtors use CMA to determine the list price of a property based on the market.

Commercial Real Estate Appraisers use the Income Approach to value in the analysis of income-producing properties. This differs from owner-user type property appraisal.

The Commercial Appraiser might lend greater weight to the income approach as the lead value indicator. With income-producing properties, investors are looking for a financial return for their investments.

The Income Approach assumes three things relate to a property.

These include:

• A property’s current market value
• The expected net cash flow
• The relative risk linked with that cash flow

One of the primary tools used in the income approach is Direct Capitalization. Value is estimated by deducting all applicable expenses from predicted gross income.

The Commercial Appraiser then arrives at the projected net income for the property. This amount is then capitalized. The rate is comparable to the risk inherent in the ownership of the property.

With each and every appraisal, regardless of type, Accurate Appraisals USA clients receive the highest quality standards. We combine this with the level of service that you would expect from a professional service company.

If you need a commercial appraisal for your business, give us a call today! We will give you a speedy and accurate valuation of your property.