An appraisal company can help you make informed decisions about the sale or purchase of land and buildings that are intended for business activities. Commercial appraisal allows you to obtain an unbiased opinion on the value of an office building, a multi-family home, a retail establishment, and other such properties.
The importance of commercial appraisal for your property
- Market value confirmation
Commercial properties are more complex to evaluate compared to residential homes. Appraisal firms use different approaches during the assessment and may combine them as needed. For instance, the sales comparison approach uses recent sales data of similar properties to assign a value to your property. Meanwhile, the cost approach calculates the overall price if it were rebuilt from scratch, referring to the current cost of land, construction materials, and labor.
- Unbiased valuation
Lenders (like banks) will typically hire their own appraisal services to assess the value of a property. But if you want a third and unbiased opinion, it’s best to hire another appraisal company yourself. This way, you can check if the lending institution is offering you a loan that is in line with your property’s actual worth.
- Earning potential assessment
Lastly, a commercial property appraisal will help give you an idea of the building’s earning potential. For instance, if you plan to convert an old establishment into a multi-family home, you can use the appraisal information to decide whether it’s worth the investment.
Finding a reliable appraisal company in Toronto
Note that commercial property appraisal takes much longer than the residential appraisal process. Moreover, the inspection is only the beginning. You must ensure that all information you provide to the appraisal firm is truthful and accurate.
Moreover, consider hiring experienced appraisers in Toronto to guarantee the accuracy of your commercial appraisal. They must be fully educated and trained in dealing with commercial properties, including office buildings, retail establishments, restaurants, development land, and shopping malls. Finally, the appraisal company must be able to present the necessary qualifications and references when asked.
If you’re looking for a reliable firm, you can’t go wrong with Appraisal Hub Inc. It is based in Richmond Hill and is a top-rated appraisal service provider, and all of the appraisers are certified by the Appraisal Institute of Canada.