What to Expect During a Commercial Property Valuation

A commercial property valuation may be pursued to determine property taxes, inform a purchase agreement, or because it is being required by a lender, amongst other reasons. Whatever the basis for your commercial property valuation, knowing what to expect along the way will help you to stay informed and prepared throughout the process. To learn more about commercial property valuations in Illinois and Indiana, reach out to our team at Allstate Appraisal today. 

Be Prepared to Answer Questions and Provide Documentation

If you are the owner of a commercial property, you should expect to be asked for numerous property documents. For example, you’ll likely need to provide information about an existing mortgage, any liens against the property, the age of the property, leases and rent rolls, original drawings of the property or any buildings on the property, income statements, a title report, and any other relevant legal documentation. Getting this organized in advance can expedite the process. 

Know What the Valuation Company Is Looking For

It can also be helpful to understand what the commercial property valuation appraiser is looking for and what factors may impact the value of a commercial property. While you should discuss this with your appraiser or your lawyer, common factors that impact the value of a commercial property include:

• The cost of construction of any buildings;
• The value of the land;
• Net operating income;
• Economic outlook;
• Interest rates;
• Size of the property and facilities on the property;
• Location;
• Market performance; and
• More.

The above list is not inclusive—talk to a professional to learn more. 

Ask About Fees Upfront

To ensure there are no surprises, you should always ask about appraisal and valuation fees in advance. Who pays these fees can depend on things such as whether you are the buyer or the seller, you are the party requesting the valuation, the court has ordered a valuation, etc. 

Plan to Work with an Expert

Whenever you are pursuing a commercial property valuation, you should always work with an accredited professional with years of experience. Commercial property valuation is highly complex and is best left to an expert. An error or misstep in the valuation process could have a big impact on future decisions and finances. 

Call Allstate Appraisal Today to Learn More

To learn more about the commercial property valuation process and what to expect during a commercial property valuation, reach out to the professionals at Allstate Appraisal directly. We have over 60 years of experience managing commercial property valuations and prioritize accuracy and timeliness. Connect today to learn more.