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Updated over 9 years ago on . Most recent reply
Pricing Strategy?
Hi All,
When selling Commercial property, is there a formula used to ensure one has the property listed at the correct price?
Thanks in advance!
-Robert Vieira
Most Popular Reply
Steve Vaughan
#1 Personal Finance Contributor
#1 Personal Finance Contributor
- Rental Property Investor
- East Wenatchee, WA
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Steve Vaughan#1 Personal Finance Contributor
#1 Personal Finance Contributor
- Rental Property Investor
- East Wenatchee, WA
NOI/Cap Rate would be one way. What is the cap rate in this area for this type of asset?
Cost to build - depreciation. The closer they are to new, the closer this will come.
Comparable sales. May have to go out of area a bit to find a comp.
Most appraisals I have seen on commercial assets are derived from factoring in a combination/ weighted average of the three. Hope this helps a little @Robert Vieira