Valuation Of Commercial Property – Factors That Can Affect It
Appraising the property is undone until the right value of the property is estimated. The most common application of real estate valuation is to determine its purchase or sale price. Value of commercial property should not be confused with price or cost of the property. The cost of the house is the actual expenditure made to build or buy the house but the value is something which enables to increase or decrease the worth of the property. If the property is well maintained its value is likely to be greater than one which is ugly. In this article, you are going to read about the factors that affect the valuating of the property.
If you are planning to sell your commercial property then you should first have property valuation to know the present worth of the property. It will ensure that you sell your property close to that figure and do all the work in legal constraints. Commercial property valuation is also done when you mortgage your commercial property for the loan to the bank or other financial institution. The real estate valuation is necessary to buy, sell or lease your property.
Factors determining market value of the commercial property
Commercial property valuation is done by the licensed and expert persons. Some of the factors which determine the market value of the property are as follows:
- Age of the commercial building is an important aspect for determining its value. If the building is too old it includes risk of falling thus, its value will be low as compared to the one which is newly constructed.
- The assets of the business like if there is fully finished kitchen in the restaurant, fuel tank at petrol pumps, then these are the major selling point. The value of the commercial property will increase substantially.
- The small increase in the floor pricing can make huge difference in valuation of the property. If the floor is build better you can get more value for the property.
- Size and location of the commercial property is another aspect which determines its market value.
It is advisable to spend money on the licensed property valuers. But some people think that if they are paying for the property valuation then they should get enough value for it. You will get the value according to the worth of the property despite you spend lots of money on hiring the valuers. The value of the commercial property may depreciate also if the building is in the traditional style and old design of equipments is installed in it.