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Why Appraisers Don’t Depreciate Land

Cleveland Appraisal Blog

What’s the difference between a newly constructed home and a hundred-year-old home? When developing an opinion of the market value of a property, what appraisers are really measuring is how much depreciation a property has suffered from, and more specifically how much depreciation the improvements on the land have depreciated.

Appraisal 279
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Eleven Types of Risk in Commercial Real Estate

Property Metrics

Similarly, leased property includes a risk that tenants will not be able to make timely lease payments as expected. Late payments can create cash flow problems for the property owner, but the situation can be worse if the tenant goes out of business and moves out of the space. Inflation Risk. Interest Rate Risk. Liquidity Risk.

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Selling Commercial Real Estate? 24 Practical Techniques to BOOST YOUR ROI on 5 Different Property Types

The Robert Weiler Company

The ROI is calculated by comparing the total cost of the investment (including the initial purchase price plus any other expenses) to its current value or sale price. Though, keep in mind that commercial real estate doesn’t always sell at market value. But you can estimate your ROI based on comparable property sales.

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Three Types of Commercial Real Estate Obsolescence

Property Metrics

One of the unique challenges of commercial real estate investment is that markets, types of property , return expectations, and physical environments are in a constant state of change. Modern tenants require high speed internet connections, strong cellular reception, advanced security features, and modern audio/video capabilities.

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Anatomy of a Commercial Real Estate Appraisal: A Top 17 Q&A Guide

The Robert Weiler Company

The commercial real estate appraiser’s role is to produce an accurate, reliable, and unbiased estimate of the market value of a property. Market value is the most likely selling price a knowledgeable buyer would pay to a knowledgeable seller. Question 6: What is the overall commercial real estate appraisal process?

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Purchasing an Income Property

D Fritz Appraisals

Using your existing home’s equity, or increased value, to purchase an income property is something financial advisor and mortgage brokers advise all the time in order to help homeowners get ahead and secure financial freedom into their retirement years.

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Commercial Real Estate Niches Booming in 2021

McKissock

As new health concerns arise, the need for new construction will remain prevalent. Cap rates: To find this, you divide the NOI by the current market value. Location and demographics: Your value will go up if you’re in a high-traffic area with good visibility. Buildings used for science and research were in high demand.