COMMERCIAL PROPERTY
BROKER OPINION OF VALUE
WHAT IS A BOV?
An analysis tool used by commercial real estate brokers to determine a specific commercial property’s value. This is not an appraisal nor a property inspection.
The reports are used by property owners, lenders, investors, CPA’s, attorneys, and other real estate professionals to assist with decisions about selling, partnership buyouts, estate planning/ time of death, refinancing, investment analysis, and more.
STEPS INVOLVED IN A PROPERTY VALUATION
1. Property Review
Broker will review the property details and, when applicable, view both the interior and exterior of the improvements to determine their quality and general condition.
2. Data Collection
Broker gathers various data about the property including income and expenses, tax information, zoning, any environmental data pertaining to the site, as well as the general market area in which the property is located.
3. Analysis
Broker will perform a market analysis which could entail a market lease and cap rate analysis, land cost comparisons, market trends and outlook, vacancy rate comparisons, comparable sold properties, current available properties, and more when applicable.
4. Executive Summary
A summary of the broker’s findings indicating the broker’s high-level opinion of the value and demand for the property.
ENTAILMENTS
Pictures of both interior and exterior of property when applicable.
Aerial photo of property to indicate location, site size & shape, and layout of the improvements.
Comparable sales and/or leases with good, overall similarity.