Because the appraiser is not only determining the value of the property itself, but also its best use, commercial real estate appraisal differs a great deal from residential appraisal. BRB Appraisals, LLC’s team of qualified appraisers has the knowledge and skill to properly evaluate your commercial property and return with a fair and honest assesment. Located in Hendersonville, NC, we have expert knowledge of the North and South Carolina commercial real estate markets. Therefore, business owners can have confidence in our appraisers’ ability to properly guage a commercial proerty’s true value.
Although commercial appraisal and residential appraisal are vastly different, BRB Appraisal, LLC’s approach to iniatlly determining value for each are the same. We rely on our three methods to form an accurate assesment of a commercial property’s worth and viability.
Sales Comparison Method
BRB Appraisal, LLC’s Sales Comparison Method is determined by direct comparison of factors including price per square foot, acreage, number of rooms and/or units, as well as, income multipliers and overall rates. This method is based on the notion that investors will not pay any more for a commercial property than what the average market purchaser would pay for a comparable building or property.
BRB Appraisals, LLC’s Cost Method is basically the estimated replacement cost of any improvement, minus depreciation, in addition to the value of the land that is determined by fair market comparison. This method helps to establish a property’s most viable and productive use.
Since a commercial property’s focus is to produce revenue, BRB Appraisals, LLC’s Income Method is vital in providing potential investors an accurate depiction its viability. There are two methods of determining a commercial property’s value.
Direct Capitalization of commercial real estate estimates value by deducting associated expenses from the anticipated gross income to project net income for the upcoming year. This is the capitalization rate and it is derived from sales in the Sales Comparison Method mentioned above. Direct Capitalization is most appropriate the appraisal of commercial property when the revenue is expected to be stabilized after the transition period.
With Yield Capitalization the appraised value is estimated by deducting the expenses from anticipated gross income to decide a projected net income during each year of ownership. It is discounted at a rate comparable with the risk involved with the ownership of the property.
Contact BRB Appraisals, LLC online or call us at (828) 693-1300 to speak with one of our experienced appraisers today.