Minnesota Real Estate Appraisal Services provides Commercial Real Estate Appraisal Services Throughout the bulk of the state of Minnesota. However, we do most of our work nearby in the Minneapolis St Paul Metro area as depicted on the map below.
The post Minnesota Real Estate Services Metro Service Area appeared first on Minnesota Real Estate Appraisal Services LLC.
That is hardly a surprise. Unlike most home appraisals, there are usually far fewer comprable (comps) properties with which to do an accurate valuation based on market activity.
Appraisers use three approaches to value in Appraisal Practice when determining the Market Value of a property:
The Sales Comparison Approach is the primary approach used with typical residential situations, but extends beyond that market.
Definition: The Sales Comparison Approach compares recently-sold local similar properties to the subject property. Price adjustments are made for differences in the comparable and subject property.
The sales comparison approach is the foundation for the real estate professional’s CMA, Comparative Market Analysis. This is a process used to determine the current market value of a property based on recent sales of comparable properties in the area.
https://www.thebalance.com/sales-comparison-approach-in-real-estate-appraisal-2867363
The Cost Approach is most useful with newly constructed properties, but can be applied to other properties if depreciation is dealt with effectively.
What is a ‘Cost Approach’
The cost approach is a real estate valuation method that surmises that the price a buyer should pay for a piece of property should equal the cost to build an equivalent building. In cost approach appraisal, the market price for the property is equal to the cost of land plus cost of construction, less depreciation. It yields the most accurate market value when the property is new.
Read more: Cost Approach http://www.investopedia.com/terms/c/cost-approach.asp#ixzz4ep9C6lAk
The Income Approach is most appropriate of course for properties that produce income. This can be anything from a single family rental home, duplex or apartment building. It can also include a wide range of retail stores fromthe corner grocery to the Mall of America in Bloomington, Minnesota.
It is particularly common in commercial real estate appraisal and in business appraisal. The fundamental math is similar to the methods used for financial valuation, securities analysis, or bond pricing. However, there are some significant and important modifications when used in real estate or business valuation.
While there are quite a few acceptable methods under the rubric of the income approach, most of these methods fall into three categories: direct capitalization, discounted cash flow, and gross income multiplier.
In a formal appraisal, for commercial properties we look at all three approaches where applicable and can on occassion come up with three distinctly different valuations. These tend to be close in most cases, and they it becomes an educated process of determining the most appropriate weighting each deserves.
Obviously, there is much more detail that can be offered on each approach. For more information on how to effectively value your property consult a qualified Real Estate Appraiser.
For complicated properties, you really want to find an experienced appraisel like Clarke Goset of Minnesota Real Estate Appraisal Services. They offer upper tier support for complicated properties and those in contentious legal situations. While they do apartment buildings, their focus is on commercial and industrial property valuation.
The post Commercial Real Estate Appraiser – Minnesota appeared first on Minnesota Real Estate Appraisal Services LLC.
Are we setting the stage for future misery, again?
U.S. bank regulators may increase the commercial loan threshold for requiring appraisals from $250,000 to $400,000, Bloomberg reported. The change could make it easier for small-business owners to secure financing and also ease costs since appraisal fees are typically well over $2,000.
The Independent Community Bankers of America called for an even higher threshold of $500,000 last year, saying that a change was needed “to reflect the rising costs of real estate particularly in many urban markets.” The minimum for residential real estate would remain at $250,000.
At the same time, the change could put a lot of appraisers out of work. Karen Mann, an appraiser who works in California, said appraisals are the best way to measure a property’s worth.
“There are a lot of things you don’t know by not having somebody go out and inspect the property,” she said. [Bloomberg] — Kathryn Brenzel Real Estate Appraisals | Small Business Loans Real Estate
While we support efforts to make it easier for small businesses to get loans, the valuations of small commercial properties is far more variable than the typical single family home.
What is that high effeciency furnace worth on resale? How about insulation or other features in a high efficiency home? A new program seeks to make the value of such features more evident to prospective buyers.
The program from RESNET and the Appraisal Institute would include HERS scores on appraisal forms in some states to make energy efficiency more transparent to buyers. The move also could help convince skeptical builders that there’s a return on constructing high-performance buildings, says Green Building Advisor’s Scott Gibson. Builders of high-performance houses often find that traditional appraisals fail to give enough credit for energy-saving features.
“One of the largest barriers to the building and selling of high energy performance homes is that the value of energy upgrades is too often not reflected in the real estate appraisal of a home,” RESNET Executive Director Steve Baden told the Insulation Institute. “Many of the features that make a home energy-efficient are hidden behind drywall and aren’t obvious to home buyers. Our goal is to make information, such as the HERS score of a home, visible in the appraisal so that consumers have more facts available to make their decisions.” Via builderonline.com
When you need a real estate appraisal done in Minnesota, whether commercial, industrial or residential, we invite you to contact us for a free initial consultation. real
The post Recent Appraisal Topics appeared first on Minnesota Real Estate Appraisal Services LLC.
National and Regional Industrial Real Estate Appraisal Trends
We are looking to identify trends in national and major nearby metro areas to alert ourselves to anticipated changes in the demand for industrial real estate here in Minnesota.
The new president has been talking about a rebirth in manufacturing in the US, whether or not he can pull it off is another question, but you wold expect some increases in appraisal values if only in anticipation of renewed demand.
In the Chicago Market Brian Forde, a partner in the O’Keefe Ktibs & Hynes law firm notes in a recent REJournals article that…
Since the start of the recovery from the 2008 recession, we have witnessed incredible growth in Chicago’s industrial market.
Since the start of the recovery from the 2008 recession, we have witnessed incredible growth in Chicago’s industrial market.
Since 2013 alone, some of the market measurements that demonstrate that growth, according to Colliers, include:
There are other measurements that demonstrate the strength of the market. Since 2013 more than 210 million square feet of acquisitions greater than $1 million—including owner/occupied facilities—occurred. The average sale price, on a per square foot basis in 2016, was $58, an increase of 32 percent since 2013.
There are other measurements that demonstrate the strength of the market. Since 2013 more than 210 million square feet of acquisitions greater than $1 million—including owner/occupied facilities—occurred. The average sale price, on a per square foot basis in 2016, was $58, an increase of 32 percent since 2013.
With all these metrics pointing to dynamic and sustained growth, the values assigned to industrial property—throughout the metropolitan area—have followed suit. The flipside to this dramatic growth: real estate property taxes typically follow with similarly substantial increases that mirror lease revenue increases and growth to the bottom line for landlords.
With all these metrics pointing to dynamic and sustained growth, the values assigned to industrial property—throughout the metropolitan area—have followed suit. The flipside to this dramatic growth: real estate property taxes typically follow with similarly substantial increases that mirror lease revenue increases and growth to the bottom line for landlords.Via rejournals.comVia rejournals.com
Yahoo Finance suggests investment interest for industrial property is moving to smaller markets. Does that include the Twin Cities? or is it more likely to occur in the St Clouds, Duluth’s and Rochester’s of Minnesota?
WASHINGTON, Feb. 23, 2017 /PRNewswire/ — Steered ahead by strengthening demand in smaller markets, the commercial real estate sector should remain on stable ground in 2017 and offer decent returns for investors, according to the latest National Association of Realtors® quarterly commercial real estate forecast.
WASHINGTON, Feb. 23, 2017 /PRNewswire/ — Steered ahead by strengthening demand in smaller markets, the commercial real estate sector should remain on stable ground in 2017 and offer decent returns for investors, according to the latest National Association of Realtors® quarterly commercial real estate forecast.
Lawrence Yun, NAR chief economist, says the U.S. economy is poised for slight improvement in 2017. “Last year was the 11th year in a row of subpar GDP growth, but renewed corporate optimism leading to a focus on investment and a desperately needed boost in residential construction should pave the way for modest expansion this year of around 2.4 percent,” he said. “Steady hiring and low local unemployment levels are finally supporting higher wages and increased spending, which in turn bodes well for sustained demand for all commercial property types.” finance.yahoo.com
While we look to outside sources to inform our understanding of regional and national trends, the reality of appraisal is still local. At Minnesota Real Estate Appraisal Services, we work to be aware of trends as they affect the marketability of property, but we are more hard nosed than not. We want to do our industrial Real Estate Appraisal with a firm understanding of the local market – recognizing that outside trends will have an effect locally.
The post Industrial Real Estate Appraisal Trends appeared first on Minnesota Real Estate Appraisal Services LLC.
Our Appraisals Stand Up in Court. We are Court certified and expert witnesses. Because when we do an appraisal we are careful to understand all aspects of a properties value.
We provide commercial and industrial appraisal services to Minnesota
Office buildings, corporate, industrial.
Hotel, Motels, Campgrounds
Retail, shopping malls, storefronts
Parks, marinas, golf courses
Nursing homes, multi-family, Retirement Homes
Restaurants, Auto Dealerships, Service Stations.
Benefit from our depth & Breadth of Collective knowledge and experience
Expect us to… Meet YourAppraisal Needs
with attention to Quality and Timeliness
We are Minnesota Real Estate Appraisal Services
and we are here to serve you.
Call today for a free no obligation initial consultation: 612 618-0917
The post Commercial Real Estate Appraisals – Minnesota When You Need It Done Right appeared first on Minnesota Real Estate Appraisal Services LLC.
Your client is going through divorce and there is real property involved. One party thinks its worth a fortune, and fears their ex partner is trying to pull a fast one on the settlement.
What do you do? You contact Minnesota Real Estate Appraisal Services LLC in Minnesota and get them to do an Appraisal that both parties can trust.
Their appraisers can handle anything from Residences, to lake homes, factory buildings to office properties, Golf course and marina’s, hotels and motels, development land and more.
If you need a real estate appraiser in Minnesota, you will not do better than Clarke Goset and his crew.
Coming to a fair valuation on real property, won’t make the pain go away, but it will remove one of the points of contention, and help all parties involved get on with their lives.
The post Real Estate Appraisals That Will Stand Up In Court, If They Had To – Minnesota appeared first on Minnesota Real Estate Appraisal Services LLC.
Home prices are crossing the line again. After an epic housing crash, where values plummeted nationally by almost 35 percent, the nation is seeing new highs again. The median price of an existing home sold in May hit a record $239,700, according to the National Association of Realtors, which began tracking prices in 1968.
“We are seeing flashing yellow lights on affordability. People who are currently renting and want to convert into ownership — major difficulty,” said Lawrence Yun, chief economist of the NAR. “Home prices are rising way too fast compared to people’s income and wage growth.”
In a separate report, however their is some hope. Perhaps due to Brexit, financing costs for mortgages are now at 3 year lows.
Mortgage applications up 3% on lowest rates in three years
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to its lowest level since May 2013, 3.76 percent, from 3.79 percent, with points increasing to 0.33 from 0.32 (including the origination fee) for 80 percent loan-to-value ratio loans.
The evidence is in the high sales reported by the National Association of Realtors.
Existing home sales for May 2016
released by the National Association of Realtors
U.S. home resales rose in May to a more than nine-year high as improving supply increased choice for buyers, suggesting the economy remains on solid footing despite a sharp slowdown in job growth last month.
The National Association of Realtors said on Wednesday existing home sales increased 1.8 percent to an annual rate of 5.53 million units last month, the highest level since February 2007.
April’s sales pace was revised down to 5.43 million units from the previously reported 5.45 million units. Economists polled by Reuters had forecast sales rising 1.1 percent to a 5.54 million-unit pace in May.
The strong home resales added to retail sales data in painting an upbeat picture of the economy. That should help allay fears about the economic outlook which were stoked by last month’s paltry job gains.
The market is constantly changing. sometimes up, sometimes down. These swings tend to be even more pronounced for commercial and Investment real estate. That is where a professional Appraiser comes in. We strive to be on top of current trends and up to date on all valuation specifics.
Within Minnesota, your best bet when you need a solid appraisal on Significant properties iw with Minnesota Real Estate Appraisal Services
The post Housing Values up on demand, but can lower financing costs help? appeared first on Minnesota Real Estate Appraisal Services.
