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» Hotel Values
When determining the value of any commercial real estate property, hard money lenders will want to see a relatively recent written appraisal on the property. Other factors may alter the appraisal amount, however. For example, if your appraisal comes in at $20 million dollars as is, but you have one or more serious offers from valid buyers to purchase your property at $25 million, your property may be worth more than the stated amount on the appraisal.
Before accepting the appraisal value of your property as gospel truth, look at comparable properties in your area to see what they are selling for. While your appraisal may contain comparable property values, even a few weeks or months can make a difference in the selling price of commercial properties in some areas. Obviously, natural disasters, such as the storm and floods in the New Orleans area, will dramatically affect the value of properties in the area. But even in areas which have not experienced such events can see significant increases and decreases in value in a short period of time. A decision to build a major project, such as an airport, sports complex, arts center or other civic amenity next to your property will increase its value signigicantly overnight. Keep abreast of current affairs to keep abreast of the value and potential of your real estate investments.
