Perhaps you have operated your business out of the same building for years and are ready to sell—or maybe you acquired a commercial property through a merger or inheritance and want to know its value. Whatever your reason for requiring a commercial appraisal, it helps to be prepared. In the following sections, you can learn what a certified appraiser looks for while gathering necessary documents and information.
What Does a Commercial Appraisal Expert Look For?
Property & Building Size
The first factors a commercial real estate appraiser assesses are the size of the property and the size and number of buildings on the site. This includes a review of all zoning restrictions and regulations. Certified appraisers do not determine property boundaries—that duty is reserved for a surveyor.
Building Condition & Age
Your commercial real estate property is appraised based on the building’s age and overall condition. Design factors such as quality of construction and finish work are included in the final report, as well as all renovations and added features. Any points of deterioration also weigh heavily in the appraiser’s report. The functionality of the building factors in, too—is it functional in its current state, or does it require work?
Health & Safety Factors
The commercial building must be safe for occupancy and adhere to all state and local government codes and regulations. This includes whether the building is structurally sound, free of insect, rodent, mold, and mildew infestations, and if it features asbestos, lead-based paint, and other health and safety issues.
Costs & Comparable Sales
The expense of repairing or renovating your building is then subtracted from the final appraisal. Also, appraisers review comparable properties in your area or region to determine the market value of your commercial building. The rate of depreciation is another determining factor.
If you need a commercial appraisal, turn to the detail-oriented and certified professionals at South Eastern Appraisal. They serve business owners throughout Kentucky, including industrial properties and farms in Pulaski County and the eight surrounding counties. This Somerset-based business boasts the only MAI- and SRA-designated appraisers within 50 miles. Call (606) 679-7339 to schedule a meeting or visit the website for additional service information.