In the past, most business owners would consult the comparable sales in their area to determine the current value of a commercial property. Today however, savvy property owners know that the comparables only tell part of the story. Basing a price on limited, non-specific data could cause a broker to undervalue a property. NBI Michigan’s Asset Evaluations do not skim the surface. We base do not base our assessment on comparables data alone, but combine these findings with other key metrics to determine the most accurate assessment of a commercial building.
What Comprises Michigan Asset Evaluations for Commercial Properties?
The process is complex but involves three approaches to determine a property’s value:
- The cost approach: the current cost to replace a property less losses in value through accrued depreciation.
- The sales comparison approach: the value as estimated by a review of recent sales of similar (i.e. comparable) buildings in the same region.
- The income capitalization approach: the market value that the property’s net earnings will support. These projections are based upon a capitalization of net income, stabilization, and residual equity buildup.
At the time of sale, property owners want to realize the maximum value for their building(s). Therefore it is highly important to provide significant and accurate data to make as complete an assessment as possible. The professionals at NBI Michigan are committed to performing the most thorough commercial building inspections available. Every NBI Inspector has the training and knowledge to provide a complete inspection of every type of commercial property. Our continuing education and field knowledge ensure we utilize the most current inspection methods when evaluating your property.
Our credentials include AARST ARP for radon detection, CMI, SAE, NFPA, as well as the International Standards for Electrical. NBI Michigan also has two structural engineers on staff, giving our team the ability to perform a full range of structural evaluations. We carry a valid builder’s license and have had previous affiliation with NACHI and ASHI.
When only the best will do, contact NBI and ask about our Michigan Asset Evaluations! To speak with us, please call (866) 665-6022 today! If you prefer, please complete and submit our form.