Depending on where you live, undeveloped commercial real estate can range from a dime-a-dozen property to solid gold. However, there's almost always someone who can put that lot to productive use. If you're looking to sell these properties, then the required steps can be more complex than those involved with selling a home or even a residential lot.
For most transactions, you can expect some degree of negotiation with generally well-informed prospective buyers. Buyers will typically conduct a property appraisal and investigation as this process goes on. With so many moving parts involved in selling your land, you may wonder whether you need a commercial appraiser of your own.
What Does an Appraiser Do?
There's no objective answer to the value of any piece of land or even an existing commercial structure. However, market conditions and the potential for development are two significant factors that play into the valuation of any vacant lot. Understanding how these and other considerations impact the value of a property is the domain of an appraiser.
When you hire a professional firm to value your land, they'll do much more than just compare it to other similar plots. A critical part of this process involves determining the best possible uses for the land and how its location may impact its future revenue generation potential. This analysis will look at everything from the size of the property to the condition of its soil.
Why Do You Need One?
The most important reason for hiring an appraiser is also the most straightforward one: to keep the balance at the negotiating table. Buyers will likely perform an independent appraisal, which means they'll have a reasonable idea of the value of your land. Not having this information at hand can put you at a disadvantage during price negotiations.
A more subtle consideration is that not all buyers will have necessarily determined the best possible use of the land. You may receive offers from developers who plan to use the land in non-optimal ways and provide you with lower offers as a result. A commercial appraisal can clue you into potentially more profitable uses for your land so you can hold out for a better offer.
In general, it's worth considering an appraisal when you're selling any significant parcel of commercial real estate. The information provided by the appraiser will give you a much stronger position at the negotiating table and can even help inform how you market the property. When selling commercial real estate, you should always consider an appraiser an essential part of the process. For more information, contact a local commercial real estate appraiser to learn more.
