Using Comps to Value Commercial Real Estate

When appraising commercial real estate, comps (or comparables) are one of the most important tools for determining a property's value. Comps refer to recent sales of similar properties that can be compared to the subject property. By analyzing the key traits of the comps and comparing them to the subject, an appraiser can arrive at a well-supported opinion of value. Here are some tips for using comps effectively when valuing commercial real estate:
Using comparable sales is typically the most straightforward way to develop a credible opinion on commercial real estate value. With high-quality comps and appropriate adjustments, an appraiser can produce a well-supported valuation. Comps should be used in conjunction with other valuation methods as part of a robust appraisal process.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or investment advice. It is always recommended to consult with a qualified financial advisor or investment professional before making any investment decisions.
Scott Naasz
Founder and President Broker
North Star Commercial Real Estate Advisors Keller Williams Preferred Realty
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