Here’s how you can compare properties in Vancouver
Want to know how comparative market analysis for business buildings in Vancouver can help you? It’s actually quite easy and a great method to learn for those bank appraisers, investors and real estate brokers who want to ascertain what a fair and exacting market rate is for the property they are interested in.
It’s a relatively pain-free process. The comparative market analysis for commercial properties in Vancouver allows the real estate broker to compare sale prices of properties that have recently been sold; this is in order to discover exactly what the fairest market value is of another property type before it goes on sale.
First up, the property that needs to be invested in should be of a similar type. As an example, you should not compare a strip mall to a public library as the incomes and laws relating 105-3811 Hastings Street, Burnaby to each property would be vastly different.
Next – the properties that you plan to compare should generally be of the same size, and be in a fairly similar condition to each other. So in this case, there should be a similar amount of rooms, or possibly even be in the same area.
If you wish to do comparative market analysis for commercial buildings in Vancouver then you should ensure, as we’ve said above, that they are in the same type of market as each other. What this means is that property 1 cannot be in an upmarket area and then you are trying to compare it with property 2 that’s in a commercial region of the city or one that’s generally on the decline. The properties can even differ greatly if they are too far apart. This means, ensure that the properties are located in the same region (as a rule of thumb).
Finally, try to make a comparative market analysis of properties that have been recently sold. It doesn’t do much good to compare two properties if they’ve been sold perhaps even 2-3 months apart from each other. Because the property market can turn on a dime, it’s unfair to compare locations unless they have both been sold within 1 month of each other.
Always bear in mind that this really only works if you’re comparing on a like-to-like basis. If any of the above is too far out of whack, the benchmarks for each one ensure wildly different readings.
So there you have it, that’s how comparative market study for commercial buildings in Vancouver operates. It’s far easier than you thought it would be and really boils down to common sense.
