Quote:
Originally Posted by Kryzsky
I'm helping my folks out with the sale of their business/building, they're in the middle of renos right now so I need to take a bit off their plate. Before making some calls I was hoping to get a bit of advice.
Who usually pays for the appraisal, the buyer or the seller? They have an interested party but are considering paying for the appraisal themselves in case this buyer falls through and force my folks to advertise.
Also, can the cost of the appraisal be added to the price of the building upon sale?
Thank you
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I'm not sure there's any general rule of thumb as to who pays for the appraisal.
An appraisal will generally cost between $2,000 - $5,000 using one of the Calgary firms. Altus, Colliers, etc.
If the purchaser has a financial problem with paying for an appraisal I'm not to sure they should be purchasing a commercial property.
Depending on the size of the property the purchaser may also be required by any lender to get an ESA and building condition report before the mortgage would fund. Unless these were done recently.
You can add the cost to the building if you want. Really it's a pretty small cost.
You could also line up financing before so someone could value the building and arrange financing pending approval of the purchaser.
Edit: More questions, how big is the property. Is the business run out of the property (owner occupied?) what's the lease rate? Is it in Calgary? You can send me any of the info via pm if you want.
Building Appraisals?
