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Mimi Foster
Falcon Property Company - Colorado Springs, CO
Voted Colorado Springs Best Realtor

Since you are not studying to be an appraiser, please let us know why this question is relevant to what you're doing. We don't do appraisals.

Nov 19, 2019 09:18 AM
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Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

What Candice A. Donofrio says.

Being sure you're getting ALL of the accurate numbers from the owner is probably the biggest challenge.

Nov 19, 2019 10:24 AM
Rainmaker
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Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

it's not a difficult task... you must have the correct income figures....

Nov 19, 2019 09:53 AM
Rainmaker
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Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

We would not appraise, but a commercial broker WOULD analyze and evaluate and provide an OPINION of value.

And it's not really hard at all when you know how.

However, the biggest challenge is going to be making sure you have ALL the expenses right so your NOI is accurate. From there out, it's formulaic. 

Still, even for a commercial property, you'd use more than just income to determine value.

Nov 19, 2019 09:37 AM
Rainmaker
5,095,861
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I have no idea... I don't appraise. I am not a licensed appraiser. I suggest you refer this question to an appraiser.

Nov 19, 2019 09:19 AM
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Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Start with having a good timber inventory and know the timber markets in the area...

on the other hand, unless you are becoming a commercial appraiser or investor, you will never need to deal with this.

Nov 19, 2019 05:20 PM
Rainmaker
1,497,698
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Dunno, never done it.

Nov 19, 2019 01:45 PM
Rainer
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Caroline Gerardo
Licensed in 20 states - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Determining rental value from advertisements, rental survey from management companies and Craigs List rentals is pretty variable to find the market rents fora residential appraisal. Cost approach is more valuable

Nov 19, 2019 10:49 AM
Rainmaker
2,371,964
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

Realtors don't do appraisals.

Nov 19, 2019 10:48 AM
Rainmaker
2,775,046
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

The cost to build and how much rent one can obtain differs from locations

Nov 19, 2019 10:15 AM
Rainmaker
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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Mike,

This is something that an appraiser can answer.  In commercial real estate, we did a "rough" pro forma for our clients for their accountant to review and rewrite.  This was to explore what could be earned on a building whether it was an office building or a retail development.  Again, this was not a certified report, it was for discussion only. A

Nov 19, 2019 09:28 AM
Rainmaker
1,712,551
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Finding rental comps.

Nov 20, 2019 03:28 PM
Rainer
5,482
Mahogany Boyd
Mahogany Lending Group - Miami, FL
We specialize in unsecured lines of credit

The most difficult part of the market data method of appraising is adjusting for differences in the properties

Nov 20, 2019 10:32 AM
Rainmaker
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Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

FIrst having all the data, all the income and all the exenses. Most come to me with much missing. Then once you have it all, knowing how to calculate it

Nov 20, 2019 05:21 AM
Rainmaker
2,070,825
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL

Never use it. 

Nov 19, 2019 10:30 PM
Rainmaker
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Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

I have no idea.

Nov 19, 2019 09:58 PM
Rainmaker
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John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

I don't have the knowledge or experience to answer your question since I have no need to make those judgments and I am not an appraiser.

Nov 19, 2019 04:39 PM
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

I wish you all the best with your real estate studies. 

Nov 19, 2019 03:07 PM
Rainmaker
7,784,719
Roy Kelley
Retired - Gaithersburg, MD

Finding and adjusting the comps.

Nov 19, 2019 12:58 PM
Rainmaker
626,208
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

Not hard if you have a good P & L on the property. If you have good income numbers determine the rate of return you want and offer a number that generates the income you want. Obviously you have to factor in the condition of the property and adjust accordingly.

Nov 19, 2019 12:21 PM
Rainmaker
897,388
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Getting the details of operating costs.

Nov 19, 2019 11:33 AM
Rainmaker
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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I do a CMA, not an appraisal.

Nov 30, 2019 09:42 AM
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Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Sorry, I can't help - I'm not a licensed appraiser.

Nov 20, 2019 05:54 PM
Rainmaker
5,188,610
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Verifying the income and expense numbers!

Nov 19, 2019 02:24 PM