Should You Take the Cost Approach Valuation?

Paulk Turner

ATLANTA—First time property owners may be surprised to learn that commercial real estate appraisals are typically significantly different and more complex than single-family residential appraisals. This nugget of wisdom comes from Paulk Turner, director of J.H. Berry & Gilbert’s appraisal and valuation services division.

“Commercial appraisals require a greater level of research and analysis than residential appraisals, but the primary difference is based on the income-producing potential of commercial properties,” Turner tells GlobeSt.com. “The three accepted approaches to value in a commercial appraisal include the Cost Approach, Sales Comparison Approach, and Income Approach, which are described in greater detail in the following paragraphs.”