Commissioning a qualified professional to conduct a commercial appraisal of your business is truly a gift for both you and your business. Knowing the true price of your business will provide you with peace of mind, while it affords stability to your business. Anything can happen in the world of business, and by having a professional commercial appraiser appraise your business you’ll be ready for any eventuality.
Should you need to negotiate a loan, find a new space, expand, take on new business partners, or dissolve a partnership that’s not working out, having a commercial appraisal you can rely on ensures that you will have the critical information you need to make the right decisions and see your actions through. Also, if you ever choose to sell either your business or the commercial property, an accurate commercial appraisal will be the most trustworthy guide in how to properly price your sale.
The Importance of Due Diligence
In the world of real estate, especially commercial real estate, few things are more critical than due diligence. When selling a commercial property, full due diligence includes additional reports, such as an environmental report, zoning compliance, and building and engineering reports. While it is sometimes best to wait until an impending sale to conduct those reports, as they may be the buyer’s responsibility financially, there are many reasons not to wait to conduct the commercial appraisal portion of due diligence.
As mentioned above, the appraisal is invaluable in a host of other situations in addition to the sale of a business or property. But what is more, it is best to have the information that the appraisal provides during every stage of conducting a sale, as it is the most important information for choosing the asking price and determining how to most effectively market your property and business in any given real estate climate. Having this due diligence performed by a professional will provide you with concrete information that will be useful in making all major business decisions.
How a Commercial Appraisal Is Conducted
If your previous experience of real estate appraisals were residential, you’ll be surprised at how different commercial appraisals are. The property inspection is only a small factor in conducting the appraisal. While an inspection is certainly a part of the process, of equal importance is the research that the appraiser will conduct afterward:
- Research zoning and public ownership records
- Explore demographic and lifestyle information
- Compile comparable sales
- Create an inventory of replacement costs and rentals
Once this analysis is completed, the appraiser then creates a full report detailing the value of the commercial business. One that takes into account many other factors, including the current local real estate and business markets. It’s easy to think that an appraisal provides a number that will give an accurate representation of the worth of a property or business. But, if this figure does not account for those other factors, then it will fail to give an accurate representation of your business and property.
Of course, making sure the appraisal is carried out by professionals is one of the most important ways to ensure that you’re being provided with an appraisal that reflects the true value of your business. Here at Russell Roberts Appraisals, our firm has been providing our clients the very best commercial real estate advice and services for over 25 years. We focus exclusively on commercial real estate to provide our clients with the very best service. Whether you are looking to overhaul your taxes or are planning to undergo a sale with your business, having a commercial appraisal you can rely on is key, and we’re here to make sure you have all the information you need. Click here to contact us or to get a quick quote.