When a Real Estate Representative conducts a real estate evaluation, it’s important to recognize that it represents an opinion of value rather than an accredited appraisal. However, a knowledgeable person can incorporate many of the steps and detailed information typically included in an appraisal into their opinion of value.
If you’re considering taking your building to market, thorough inspections of several areas are essential and should not be overlooked. However, if you’re not planning to sell, you may simply require a high-level estimate of value based on financials, market trends, and the building’s overall condition. This broader view of value may not account for potential upside from unused space, deferred maintenance, or below-market revenue streams.
Valuating buildings involves numerous variables, and no two buildings are identical. Even sister buildings located side by side may differ significantly in value depending on factors such as rental income and condition. The purpose of the evaluation will determine whether an accredited appraisal or an accurate opinion of value is needed.
There are three base approaches to establishing a value when evaluating real estate: the Direct Comparison, Replacement Value, and the Income Approach.
The heartbeat of an income-producing property lies in its ability to generate both current and future revenue, a direct reflection of its present value. Drawing on my expertise and fueled by passion, I dive deep into your property’s financials, meticulously examining income and expenses using a detailed proforma and my firsthand experience with revenue streams and acceptable expenses.
Through rigorous analysis, I unearth a treasure trove of numbers, comparing your property against similar counterparts in the market. I leave no stone unturned, identifying any potential future income streams and uncovering any deferred capital improvements that could impact on its final value.
Delving into the rent roll, I meticulously compare average rents per suite type of your property to similar buildings in comparable areas, leaving no detail unnoticed. This comprehensive study culminates in an opinion of value that both sellers and buyers can trust and rely on, a testament to my unwavering dedication to excellence in real estate analysis.
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