Property Appraisal Considerations
Most consumers have a general idea of the difference between “wholesale” and “retail” sales in the marketplace. The wholesale market can be thought of as goods being sold in large quantities to be retailed by others, while retail refers more to the sale of goods to the end consumer in smaller quantities and not for resale. Products generally sell for less per unit with the larger quantity wholesale transactions.
These same concepts can apply to the real estate market and can be part of property appraisal considerations.
Generally, larger properties transact for a lower price per unit (per acre for example). When a subject property is being compared to other market sales, adjustments may be needed in the comparable sales analysis to account for differences in size between the subject property and the comparable sales. A property is also typically appraised in an “as is” condition. A subject property that has future small lot development potential cannot be valued using “retail” prices.
The Steigerwaldt appraisal staff are experts in understanding these considerations and integrating them into the appraisal process. In instances where properties are in a market setting where the future highest and best use may include development for smaller lots, our team can develop discounted cash flow analysis applications to determine the present value for the property considering future development costs and retail sales.
Contact Tom Hittle [email protected] to learn more about our appraisal services and determining the value of your property.
