How well an appraisal of a commercial property goes can have a huge impact on how much that property sells for. For this reason, it's important to do everything you can before an appraisal is done to maximize the appraisal value.
The following are six mistakes you should avoid before an appraisal to ensure that your commercial property will be given the highest possible appraisal value:
Having a property appraised without a thorough cleanup
Don't underestimate how large an impact a simple cleaning can have on the appraisal of a commercial property. While you might assume that the cleanliness of a property shouldn't have a huge impact on its appraised value, this is not the case. Results from an appraisal will be influenced by the general impression the appraiser has of the property through details like how clean it looks.
Neglecting to make minor repairs that are needed beforehand
If you're planning on doing any repairs to the property in question, make sure you do them before the appraisal is carried out by a company like East Coast Appraisal Services. Even the most minor repair could potentially boost the appraisal value significantly enough that the price you close at will be much higher.
Performing repairs without first evaluating the ROI of possible repair projects
You should optimize your capital and your investment in your commercial property by doing some research on how much particular repairs will cost in relation to how much they can be expected to boost the property's value. Plan out repair projects in such a way that you can maximize the return on investment you get from carrying out these projects.
Not having a list of all the repairs that have been made handy for the appraiser
The appraiser should know of any repairs that have been carried out on the property. If the appraiser knows that certain appliances, building components, or pieces of equipment are new, the appraised value of the property is likely to increase.
Failing to properly place and document safety equipment
When it comes to a commercial property, safety equipment like fire extinguishers and smoke alarms is important to the appraisal value. Any buyer of a commercial property will most likely need to meet certain regulations and safety codes as part of conducting business out of the property. Therefore, both the prospective buyers and the appraiser will be interested in documenting and inspecting safety equipment.
When a commercial property is sold, both the facility itself and the plot of land it is on are bought by the buyer. The landscaping around a facility can influence a commercial property's value significantly. This is especially true if the commercial property is located in a place where it will be highly visible to potential clients of the company or companies who will be located inside.