commercially zoned property value

[Brian Ellis]

Hello BP,

What is the best way to determine market value on a commercially zoned property? Two separate units being used as residential/office space. The real value is what I could be turned in to, but that would be a 10 year plan. Whats luring me in this deal is the assessed value, it is a lot higher than the listed price.. is this information irrelevant? 

How is the appraiser valuing his/her opinion of market value?

This is all new to me...

Thanks in advance!

[Aaron K.]

The tax assessed value means nothing except that the current owner is overpaying for their property taxes so don't make decisions based on that.  Value will completely depend on what you are doing with the property.  If you do nothing with it you most likely want to look at cap rate.  If you are doing a major rehab that is a whole new can of worms.