A Question of Value
Greetings,
The question “What is my property worth?” is often answered with the phrase “Your home’s value is what a buyer is willing to pay for it”.
This is certainly true, but it is an incomplete answer.
For a residential property, factors that carry weight are location, property features and market conditions. One could say it is more subjective than commercial real estate, but that is a very general and incomplete comment. It is really just a very different animal. Is there a pool or room for one? Does it have high ceilings or can such be created? What is the area like? What about the floor plan? And often others (family) are involved in the decision.
In commercial real estate value has to do with investment value or its value for use (by an owner-user) or a combination of the two. Investment value can be extrapolated based upon the expected return on investment (ROI). In the case of an owner-user, what the property offers functionally carries much more importance. How long of a drive is it from one’s residence as well as staff’s residence? Is the square footage right for now with room to change later? If equipment is involved, is there sufficient power and room? And so on.
What we often do is pay for an appraisal so that we can get our own wits wrapped around what a property is worth. This costs some money up front, but has use later in marketing (as a seller) or in negotiating (as a buyer or seller). For real estate developments, what should be done is a proforma. That is Latin for “a matter of form”, and is a term that describes documents that lay out a cash flow forecast. This can be a spreadsheet, a Word document or a napkin! In whatever form, it helps to clarify what to expect in the future. It is essential that such are done by someone competent.
We work out what we feel is in your best interest, whether you are buying or selling. It is a very key part of what we do and what you should do in your involvement with real estate.
The attached information regarding your immediate community is for your use. Please let us know if we can help you regarding your residential, commercial, or investment real estate.
Contact me with any comments or questions.
Brian Andrus
Broker/Owner/Past President of the Florida Gulfcoast Commercial Assn of Realtors
Stonebridge Real Estate Integrity is Everything | Andrus Development Group
33 N Garden Avenue | Suite 120 | Clearwater, Florida 33755 | www.StonebridgeRealtors.com
Cell 727.244.7470 | Office 727.443.5000 | Brian@andrusbroker.com