Receive an Accurate, Data-Driven Commercial Property Valuation.
At Big Box Real Estate, we offer precise, data-driven commercial property valuations for sales, leases, and development projects. Whether you’re assessing a property’s current market value or projecting its future worth upon project completion, our expert valuations provide the insights you need to make informed decisions. Our detailed assessments also help identify potential risks and recommend necessary improvements, ensuring your property is positioned to deliver maximum returns. With our valuation expertise, you’ll be confident to navigate every stage of your commercial property journey.
Frequently Asked Questions
How is a commercial property appraisal determined?
A commercial property appraisal is typically determined by a licensed appraiser, who will assess the value of the property based on several factors such as location, size, condition, and income. The appraiser will typically conduct a thorough inspection of the property and gather information about the local real estate market to make a determination of the property’s value. They may also use data on comparable properties that have recently sold in the area to help inform their appraisal. Ultimately, the value of a commercial property is determined by what a willing buyer would be willing to pay for it in the current market conditions.
What is the difference between a property appraisal and a property valuation?
A property appraisal and a property valuation are both processes used to determine the value of a piece of real estate, but they are typically used for different purposes and have some key differences.
A property valuation is typically conducted by a property valuer and is used for specific purposes such as:
- Obtaining a mortgage or refinancing a loan.
- Assessing the value of a property for insurance purposes.
- Settling a sale for a divorce or a deceased estate.
- Assessing the value of a property for government tax charges.
- Assessing the value of a property for accounting or financial reporting.
A property appraisal, on the other hand, is typically conducted by a licensed real estate agent and is used for specific purposes such as:
- Setting a sales price for a property.
- Assessing the value of a property for rental or lease purposes.
- Assessing the value of a property for purchase.
- Assessing the value of a property for accounting.
The value of a property can vary between appraisals and valuations. Appraisals are typically more in-depth and based on a detailed analysis of the property and the local real estate market, while valuations may be more focused on specific aspects of the property such as its income or replacement cost
What is the difference between a property’s market value and its assessed value?
Market value is the estimated price that a property would sell for on the open market, based on factors such as location, size, net income, the strength of the leases, condition of the property, and recent comparable sales. This value is typically determined by a professional appraiser or real estate agent and can be used for a variety of purposes, such as setting a sale price for the property, determining a mortgage value, or for tax assessment.
Assessed value, on the other hand, is the value that a local government or State Revenue Office or Bank places on a property. it takes into account the property’s size, net income, the strength of the leases, condition, location, and any improvements or upgrades that have been made to the property. The assessed value is generally lower than the market value, as it does not take into account the potential of the property and other motivating factors that may be specific to the potential buyer.
In Australia How often are commercial property values reassessed?
In Australia, the frequency of commercial property value reassessments can vary depending on the state or territory.
In some states, such as Victoria, New South Wales, and Queensland, commercial properties are typically reassessed every year, which is done by the state government. The reassessment is based on the current market conditions, and the new value will be used to calculate the property taxes for the next financial year.
In other states such as Western Australia, commercial properties are reassessed every two years. In this state, the reassessment is also done by the state government and the new value will be used to calculate the property taxes for the next two financial years.
It’s worth noting that some commercial properties, such as those in specialised sectors or those with unique characteristics may be valued differently and the frequency of reassessment may vary.
It is always recommended to check with the relevant state government authority or the local council to know the exact frequency of reassessment in your area and the methods used.