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Types of Commercial Business Appraisals 

Jul 27, 2022

For commercial businesses throughout Illinois and Indiana, knowing the value of the business is an essential piece of informed decision-making, as well as numerous financial and legal transactions. However, there are different ways of approaching the commercial business appraisal process; the method that’s most appropriate for your business may depend on things like your industry, business size, and market. Consider the following types of commercial business appraisals, and reach out to Allstate Appraisal directly for questions about our commercial business appraisal process. 

3 Main Types of Commercial Business Appraisals

There are generally three primary types of commercial business appraisals that are performed: 

  • Cost approach. The cost approach model is a real estate valuation method that simply considers the cost that is equal to the cost of building an equivalent building. As such, the value of the business in this approach is equal to the cost of equivalent land, building materials, labor, and other construction costs. 
  • Sales comparison/market approach. The market approach appraisal method relies heavily on comparable sales in the relevant market to determine the value of the property. Also known as the sales comparison approach, the purpose of this approach is to determine the fair market value of a property. 
  • Income capitalization approach. This type of appraisal approach is used to estimate the value of income-producing real estate; for example, the resale value of the property or the expected market rent value that the property could earn. 

Why Choose Allstate Appraisal for Your Commercial Business Appraisal?

If you need a commercial business appraisal, you are looking for data that can inform a decision or support a recent decision, such as a buy-sell agreement, merger, acquisition, or shareholder decision. When you choose Allstate Appraisal, you can count on us to use the most appropriate appraisal method based on your business, industry, and appraisal goals. You can also depend on us to assign the right appraiser for the job, ensuring that the appraiser we assign will be someone who has experience conducting appraisals relevant to your business and industry. Finally, we have a robust review and rebuttal process in place. The draft report will be reviewed twice, including a review conducted by our chief appraiser, before being released to the client. If the appraisal is challenged, we will be prepared to defend it. 

Choose Allstate Appraisal for Your Commercial Business Appraisal

To learn more about commercial business appraisals and types of appraisals, reach out to Allstate Appraisal directly today. Our experienced commercial business appraisers are here to support you and provide the quality services you’re expecting.

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