When considering becoming a real estate agent or investor dealing with commercial real estate, there are a lot of important terms related to the appraisal of commercial property that you will have to know about:
- In commercial real estate, experts can refer to several different types of ages when speaking of the age of a building or that of a certain modification or improvement. The latter is represented by the term “Actual Age,” while the former is the “Effective Age” of the building.
- Commercial realtors and investors will often use short text to represent large sums like $1 billion or $12 million. Along that logic, 1k would be $1,000, 1M is $1 million and 1B represents $1 billion.
- A so-called “Independent Appraisal” will be needed whenever a real estate property changes hands from a seller to a buyer. The term refers to a type of appraisal performed by a disinterested third party who is tasked to establish the true value of the property.
- When discussing the size of a real estate space, experts will often refer to the cost per square foot as /SF or PSF.
- “Liquid Asset” is a curious term and one that real estate professionals have to know about. It refers to any type of real estate asset that can be converted into cash with little effort and in a short amount of time. Find help with commercial appraisal software from http://reportbuilderpro.com/.
First Posted right here: Important Terms Relating to the Appraisal of Commercial Real Estate Properties
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