When you need to know the value of your real estate, a professional appraisal is the answer. Some common occurrences that may warrant an appraisal include:
- Buying or selling real estate
- Estate planning
- Litigation support
- Mortgage financing or refinancing
- Property valuation for IRS tax purposes
- Eminent Domain
Coffman Farm Agency can provide you a complete appraisal for all types of agricultural property. As professional appraisers, we have the knowledge, experience, and certification to analyze the market and determine the value of your property. Three approaches are utilized in the valuation process.
Cost Approach In this approach the value of improvements based on the replacement cost less depreciation is added to the value of the land. Physical deterioration, functional obsolescence, and economic obsolescence are all considered in estimating the depreciation.
Income Capitalization Approach In this approach the income that the property is expected to generate is capitalized to estimate the value. The capitalization rate is based on net returns of property similar to that being appraised.
Sales Comparison Approach In this approach direct comparisons are made between sales that have occurred and the property being appraised. Adjustments are made for differences in the quality of the land, value of improvements, location, size, and for changes that have occurred in the market over time.
If you need an appraisal of your property, or a property you are considering acquiring, we will be glad to give you an estimate of the cost and the time required for completion of the appraisal report.