Real Estate Value determinants
1. Bank Value.
This is the value the lender places on the Business Real Estate for loan purposes. Usually very conservative especially in a falling market. I is often below market value.
2. Replacement Value.
The value insurance companies place on the existing structure plus equipment and other improvements to the property.
3. Land Tax Value
This is the value the tax department places on the unimproved value of the property.
4. Appraised value
This is an estimate usually made by the real estate agent which is a general estimate of price the property or business will achieve if it was marketed for sale in the current market conditions.
5. Wholesale Value.
Usually the price that buyers place on a property and therefore tends to be the lowest value
6. Retail Value.
This is usually the value that sellers place on their property as maintenance/depreciation and sometimes current market issues are not fully factored in. As a result it is usually the highest value