Local Valuation is the number one option for Commercial Real Estate Valuation Services in Iowa
Outsource your internal valuations of commercial real estate collateral to professionals.
Get a reliable collateral value without spending hours researching the market for specific property types.
With your property identified, we can discover the fair value of the commercial real estate.
Serve your loan customer faster and put a reliable property value on the books.
50%
less cost than an appraisal
100%
acceptable for CRE under $1,000,000
5
business day turn-time
Local Valuation Is A Remote Desktop Valuation Service Of Commercial Real Estate In Iowa.
We rely on access to public transaction data, proprietary methods, and an understanding of the rural commercial market. Local Valuation provides a reliable valuation service for when getting an actual appraisal is not possible.
We serve as your internal valuation performer for lending purposes where an appraisal is not feasible.
Too often, especially in the rural areas, appraiser’s are not available or are too expensive for small commercial real estate transactions.
Many small commercial properties then are often valued internally by the lender itself.
For this very reason, the FDIC has increased the appraisal requirement threshold to $1,000,000 for commercial real estate transactions.
Internal valuations have been the only option in the past. But now, with new technology, this task can be done far more reliably and accurately by individuals who are trained in big data analysis and who also have an understanding of commercial real estate uses and construction.
This remote internal valuation service gives you back your time to focus on clients and enables you to have an even more reliable valuation for use in financing small commercial real estate loans.
They are not an appraisal and they are not performed by an appraiser.
They are, however, performed remotely by trained individuals in data analysis, property uses, and construction types.
You probably think it is faster to just do your internal valuation of financed CRE yourself.
Think again. Time is money.
Every precision hour of work that lenders spend trying to do something outside their skillset is an hour that could have been spent nurturing new loan and deposit customers.
Local Valuation offers expert commercial real estate valuation services for various types of commercial properties in Iowa.
Including: commercial land, multi-family, storage, industrial, shop space, office, downtown mixed-uses, mini-storage, auto shop, warehousing, motel, restaurant, church, and more!
To perform an internal valuation, the most important factor is that the value of the commercial real estate be less than the current threshold requiring an appraisal for lending purposes.
This service is not provided as an appraiser.
We have an understanding of commercial real estate and access to large databases of sold properties that we can use to accurately project the value of your collateral.
The investment is a flat fee of $795 paid in advance – half the cost of an appraisal.
So long as you have no expectation of receiving an appraisal from an appraiser, this valuation service is perfectly legitimate.
A valuation from Local Valuation is not an appraisal. The performer of the valuation service is not acting as an appraiser.
We are your consulting advocate in your mortgage underwriting process.
Click the Get Quote button and submit your property info.
Commercial real estate is land and buildings that are used for business use or income generating purposes.
Some commercial real estate could be owner-occupied, and have a business ran there by the property owner.
Other commercial real estate could leased or rented as an investment to create cash flow.
Examples of commercial real estate include: retail, banks, drive-thru restaurants, storage, storefronts, auto shops, manufacturing, office, etc.
Real estate is land and any attached improvements. As well as all the rights that go with the land.
Land can include resources on it or even air and water rights. Improvements that are permanently attached, like buildings, are also considered part of the real estate. Things like mobile homes or movable sheds are considered personal property. Real estate can be used for many purposes, such as: residential, commercial, industrial, or agricultural.
Real property is a larger umbrella term that can include personal property, like furniture and equipment, and also include intangible property, like business value.
Company valuation is also known as business valuation. It is the process of determining a value based on the economic potential ownership of an operating business.
These valuations are commonly based on a multiple of the current and projected gross or net income of the business. The business value can also include all related business assets such as equipment, patents, contracts, etc.
Business valuations will require the review and analysis of financial statements, ownership rights, and competitors in the marketplace.
Business valuation is not provided by Local Valuation at this time.
The value of commercial real estate can be determined by several valuation methods.
The three most commonly employed ways to determine property value are by using recent sales of similar properties, by considering the construction costs required to replace the property, and by capitalizing projected potential rental income.
When using a sales approach to value, the market is researched for recent transactions of similar commercial real estate and these will provide a range of value of what market participants have been willing to pay for similar properties in the real world.
Construction costs are what it would take a potential competitor to enter the market with a similar property. The replacement costs of the property being analyzed, once depreciated for age, help reflect the current contribution of the building. And then the current land value is added to result in a likely current value of the overall property.
Income projects are most important to investment properties. Investors will seek the best return mixed with the potential risks involved. Before investing, a buyer will compare all options and put their money in real estate that reflects their desired return. The property value can be determined by applying a multiple to the current gross rent or by capitalizing the net income after expenses.
You can calculate your commercial real estate value yourself by employing any or all of these methods. However, relying on a true professional will yield you the most reliable valuation.
The potential income of a property can directly affect the value of the real estate.
To determine the value based on income, a gross rent multiplier could be applied. To do this, the current or potential rent is multiplied by a factor derived from the market.
For example, let’s say you have a 4-unit apartment building. And, if in your market, apartments of a similar age and quality sell for 100 times monthly rent, then you could multiply this gross rent multiplier to your current income to determine your property value.
If your rent is $700 a month, you could multiply that times the market multiplier of 100 ($700×100). This results in a per unit price of $70,000. So, $70,000 x 4 units = $280,000. And that would be an estimate of your property value.
If you are in need of a reliable valuation, it is best left to the experts. A professional keeps up to date on current rents and on current gross rent multiples in your market.