Commercial real estate can be a tough market to enter alone. A lot of work goes into managing large properties with multiple tenants. It can turn into a never-ending cycle of problems, repairs, tenant disputes, and other urgent issues.
Another significant challenge is knowing a property’s value, whether you want to sell it, get sufficient insurance, or calculate if an asking price on a property you are interested in is fair. This is a time to contact a commercial property valuation service:
Finding a Commercial Property Valuation Service
Large multinational commercial property management companies like Cushman & Wakefield or JLL should be operating in your area. Alternatively, consider local companies, such as Colorado Appraisal Services LLC or Sullivan Valuation and Consulting. When it comes to property services Fort Collins boasts an impressive list of reputable companies that can assist with your commercial real estate and property management needs.
Working with a local company is often fruitful as its representatives tend to be locals with intimate knowledge of the area’s commercial real estate market. Evernest is an established residential property management service that can assist customers with home valuation services to ensure that they charge market-related rental fees. The company also manages most of the landlord-tenant relationship, leaving you to pursue other endeavors.
When securing a valuation service, determine the company’s compatibility with your needs. Some online research should reveal what a company does, how it operates, and a potential rating of its services by previous customers.
What to Expect
After finding a commercial property valuation service that will do what you deem necessary, a company agent undertakes a full appraisal of the building in question. A valuator starts by taking a tour of the facility, and any surrounding land, much like one would do if viewing a property for sale. Next, the agent measures all buildings’ dimensions and notes how many rooms, apartments, or retail spaces are available after measuring those.
During this physical inspection, an appraiser also looks at a building’s structural integrity and condition. This includes checking for leaks, dry rot, and rising damp, as such issues could affect the price. An external inspection of outbuildings, vehicle access, and parking availability follows. Throughout their assessment, valuators take photographs of everything as this helps them with their final calculation.
The above description shows that a commercial property valuation appointment will take quite some time to complete. Using any information gleaned from this appointment, a valuator now examines recent property sales in the Fort Collins area, specifically in the area where the relevant property is. Prices paid during these other sales transactions give an appraiser a good indicator of your property’s value.
Zoning plays an important part in completing a property valuation. Possible rezoning by Fort Collins local authorities, which could present opportunities for redevelopment, may also increase property values. An evaluator also considers the potential income your building could earn in the Fort Collins context, as this also factors into its value.
If you own the property being appraised, several preparatory tasks can make a valuation appointment go more smoothly and a valuation end in your favor with an accurate assessment.
Start by sprucing things up and ensuring that the property is as clean and tidy as possible. Clutter makes rooms and open areas appear smaller, and you want the appraiser to get a sense of how spacious they are. Next, have any relevant paperwork ready, including building plans, lease information, and maintenance history.
A commercial property valuation has many factors that go into determining a final value. An evaluator comes up with a dollar value of your Fort Collins commercial property utilizing the relevant ones. This calculation is complex, although an appraiser should be capable of explaining it to you in layman’s terms when delivering their report. Valuators are duty-bound to provide independent, objective reports that offer genuine insight into a building’s value.
The benefits of getting a commercial property valuation done include accurate insurance coverage. If you ensure a property on a rough estimate of its value, you are likely to find yourself underinsured when it is too late. Additionally, should you seek financing for a project and use your commercial building as collateral, it could increase the loan size you could access. Finally, commercial property valuation saves time for making business decisions and working with potential tenants or clients.