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Valuation Methods for a Commercial Real Estate Appraisal

Woman walking into CRE property

Real estate appraisal is both an art and a science. Brokers, agents, owners, and investors use appraisals to determine a property’s market value. At the most basic level, the market value is a property’s selling price on the open market. But how do you determine the value of a piece of real estate? Below, we’ll look at a few basic concepts which relate to commercial property values. Then we’ll review three common real estate appraisal methods: sales comparison approach, income approach, and cost approach. Basic Terms and Concepts When speaking to various commercial real estate professionals, you might hear terms like value, cost, price, or market value. But what do these terms actually mean?  Before diving into valuation methods, let’s explore these basic concepts in relationship to commercial real estate. Value: The worth of a property’s benefits to the owner over a period of time. Cost: Actual expenditures like materials or labor. Price: The amount […]

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How to Choose a Commercial Property That Fits Your Needs

Investors have long looked to commercial real estate to build wealth. However, entering the CRE market can be confusing if you don’t know how to start. There are many factors to consider when searching for a CRE property that meets your needs. Where will you find a property? Is the commercial property in a prime location? What is the expected cash flow? And what will renovations or repairs cost? Finding the ideal commercial real estate investment opportunity can be challenging. Here at CXRE, we want to help guide you towards a CRE investment that meets your needs. Below, you’ll find information to help you determine which commercial real estate property is best for you. As always, we are here to help. If you want more information about investing, property management, or property valuation, please contact us. One of our commercial real estate professionals would be happy to answer any questions you might have. Why Choose […]

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