Property valuation or real estate appraisal is the process used to find out the market value of a real estate property. It’s common knowledge that the value of a property can fluctuate over time. Hence, a real estate appraiser will normally gather, analyze, and apply any information they can glean with regards to a particular property. Typically, no two properties can have the same market value because so many variables can affect the value such as location, size of the land, development, as well as how much the structures sitting on a property are worth.
Moreover, property appraisal depends on the type of property in question. With that said, while there are similarities as far as appraisal basics go, commercial real estate is appraised differently from agricultural land. The similarities lie in the methods used to determine the value of the property – income approach, cost approach, and sales comparison.
Looking at the bigger picture, commercial and agricultural land appraisals may seem the same, but when you go over the nitty-gritty, that’s when the differences show. It’s crucial that you hire the service of a highly-experienced appraiser in Toronto so they can provide you with the specific type of appraisal that you need.
When appraising agricultural land, soil quality may be evaluated as part of the valuation process. This is important so the appraiser will have a better understanding of how best the property should be used.
Soil quality will likewise help the real estate appraiser estimate the potential income for the agricultural land. Along the way, the appraiser will take into consideration any improvements done on the land, as well as buildings or structures built on it, and how much it will cost to replace all those.
When it comes to commercial property appraisals, the appraiser can determine the value based on rental rates in relation to expenses that were paid out. Also factored in is the building’s replacement cost. In addition, the history of public ownership, demographics, zoning records, and lifestyle information are all taken into account when appraising commercial property.
If you have both types of land, it’s best that you hire a real estate appraiser who can provide you with the accurate information you need to determine the value of your properties.