How to Enhance Commercial Property Value Prior to Appraisal

Appraisal of a commercial property refers to the assessment of the property’s fair market value. For property owners, getting a professional appraisal is absolutely necessary before mortgaging or selling their property. Appraisal of commercial properties can be a daunting task as appraisers come in multiple times to check the property and hold several discussions with stakeholders to determine its value. Commercial property appraisals can be especially complex if they are being done for the first time. 

Property appraisals depend on the type of property in consideration, for instance, residential or commercial. The value of a commercial property is assessed by its ability to generate income. Usually, a commercial property appraisal is more time-consuming as it involves complex factors. Commercial properties have unique features that add value which makes the appraisal process more complicated. Even though appraisals are time-taking, they are a necessity before selling a property. Since several aspects have to be considered while appraising a commercial property, its market value can be increased. There are some ways you can increase the value of your commercial property before the appraisal. Some of them include: 

1. Rehabilitation and Structural Improvements 

One of the best ways to increase the value of your commercial property is by making structural improvements. If you are planning to rent out your property, some cosmetic improvements like changing the internal decor, new flooring, or even landscaping, might be good. However, suppose you are selling it and need a high-value appraisal. In that case, you must make some substantial functional enhancements, like redoing the condo units of your apartment buildings or changing the structure of your shopping center. Modernizing the property according to the current standards is a good idea to improve your commercial property’s value. 

2. Go, Greener

One of the best ways to increase the property's value is by introducing energy-efficient lights in the commercial property. Going green brings value to commercial real estate valuation by reducing the property's maintenance costs and lowering fixed costs. The younger generation of buyers is becoming increasingly conscious of the carbon footprint of the properties they buy. As demand for more environmentally friendly properties increases, so will the value. 

3. Keep Your Property Clean 

This is one of the simplest things you can do. No one likes a shabbily maintained property. Having a deep cleaning of your property to maintain its tidiness has a huge positive impact on the appraiser. There are high chances that the appraiser will assign a higher value to your commercial property if it is in a well-kept condition. You can go ahead and make some minor repairs and fix that cracking roof or the leaking tank before the appraiser visits your property. Make sure to take care of the emergency exits, fire alarms, and fire extinguishers. Appraisers are highly vigilant about the safety features of commercial properties. If your property is unsafe, it will likely be valued less in the eyes of the appraiser. 

4. Keeping the Appraiser Up-to-Date

Your appraiser should know about any new developments in your locality, like a retail store, school, college, or bank branch. Having such utilities nearby improves the property's social infrastructure and standard, which subsequently increases its value. Additionally, you should make the appraiser aware of any new developments or recent changes in your property, for instance, changing the bathroom tiles, air conditioning, etc. These factors add up to ultimately increase the value of your property. 

If you are a commercial real estate appraiser, you should get in touch with Valcre, which provides streamlined software solutions for property appraisal. With Valcre, you can finish your commercial real estate appraisal processes quickly and accurately.