Are you looking to invest or dispose of a piece of commercial real estate? One of the biggest issues to clear will be the true value of the property. Commercial real estate appraisals try to establish the true market value of commercial real estate, and are at the core of any dealings with the property. When do you need a commercial estate appraiser?
When Buying or Selling Commercial Property
When investing in real estate, you want to pick the property at the best possible price. However, you can only do so if you know the value of the property. Many buyers have commercial property appraisals done discreetly and arm themselves with this information when negotiating. In some instances, it is possible to pick the real estate below the market price.
A commercial real estate appraisal also protects your interests when selling. You avoid overpricing the property and the risk of it being on the market for too long. It also protects you from financial losses that would come from selling below market value.
However, for transparency, the buyer and seller should hire a commercial property appraiser together so that the value price is commonly known. That way, there is the risk of breaking the deal if one party discovers the price is different from what they expect.
When Dealing With Financial Lenders
The first step for a financial lender is to establish the commercial property's value in any commercial loan processing. Mortgage underwriters need to know the property's value is sufficient to stand as collateral for the loan.
They also need to determine whether the property can generate income to pay off the loan. This appraisal is necessary when buying or developing the property using a commercial loan.
When Underwriting Insurance
Your insurance company needs to establish the replacement costs of your property when they underwrite different insurance covers. Commercial real estate appraisals will help the insurance provider assess the value of the land, its structures, and any infrastructural improvements on the property. They will then calculate your premiums based on this value.
When Disputing a Tax Bill
Tax authorities love property taxes because they are easy to collect. However, the valuation of property is a common point of conflict between taxpayers and tax collectors. You can raise a tax dispute supported by commercial real estate appraisals if you feel your property has been unfairly evaluated. The evidence becomes very useful in forcing a re-evaluation and a fair tax bill.
Would you like to extract maximum value from your commercial real estate? Talk to a commercial real estate appraiser about an appraisal.
For more information on commercial real estate appraisals, contact a specialist in Manhattan, NY.
