One Real Estate

Business Personal Property Valuation

Business Personal Property Valuation
Business personal property (BPP) can be challenging to value because of the limited quantity of data available and primary reliance upon the sales comparison approach. Relatively speaking, a voluminous quantity of data is available when valuing real estate as opposed to valuing business personal property. Many real estate appraisals consider three approaches to value: cost approach, sales comparison approach and the income approach. By contrast, most business personal property appraisals depend primarily upon the sales comparison approach. While it is possible to develop a reasonable estimate of the market value for business personal property, the values tend to be more subjective than the value of real estate. The sales comparison approach depends upon principles of substitution and supply and demand. Purchasers of business personal property will seek alternatives and choose the alternative most beneficial for them considering cost, quantity and quality. For real estate, comparable sales data is available with in-depth descriptions of the real estate, including quantity and quality. For business personal property, is more difficult to obtain accurate information regarding the quantity and quality of property involved in a sale. For example, assume the XYZ Company recently closed its Chicago operation and sold the furniture, phone system, network servers, personal computers and related items for an office with 30,000 square feet of space and 120 employees. The sales data includes the quantity of desks, chairs, file cabinets, personal computers, network computers, etc. However, it does not contain precise information regarding the condition and age of each of these items. Real estate is more homogeneous and easier to describe versus the sale of a quantity of business personal property. Real estate appraisers often gain insight from preparing each of the three approaches to value for real estate assignments. However, personal property appraisers typically focused primarily upon the sales comparison approach. They do not have the benefit of contrasting the value conclusion via the sales comparison approach with values via the cost approach and income approach. It is important to define the asset being valued. Referring back to our example of the XYZ Company which closed its office, is the assignment to ascribe a value to each item as though it is going to be sold individually or is it to assign a value to the aggregate collection of furniture, computers and equipment? An alternate approach would be to define a value based upon selling subsets of the whole. For example, the furniture to one purchaser and the computers and phone system to a second purchaser. The definition of value also substantially affects the value conclusion. Market value would typically be defined as the value assuming both the buyer and seller are knowledgeable regarding the property, neither the buyer nor seller is under distress to buy or sell and an adequate amount of time is allowed to market the property. A liquidation value would also assume that both buyer and seller are knowledgeable regarding the assets. However, it would assume a very brief period of time to sell the property. Value in use describes the value of the assets to the current owner. It is not indicative of what a third party would likely pay to purchase the assets. In addition to performing an appraisal to estimate the market value of business personal property, other techniques sometimes considered for valuing business personal property are IRS depreciation schedules and appraisal district depreciation schedules. These may or may not result in a value conclusion that is similar to market value. However, it is the writer’s experience that they typically produce a value in excess of true market value. To obtain a quote or further information for a business personal property valuation, contact us at 713-686-9955 The appraisal division of O’Connor & Associates is a national provider of commercial property real estate appraisal services including cost segregation studies, highest and best use analysis, due diligence, gift tax valuation, commercial real estate appraisal, lease abstraction, insurance valuations, business personal property valuations, business purchase price allocations, single-family litigation support and business valuations.Patrick C. O'Connor has been president of O'Connor & Associates since 1983 and is a recipient of the prestigious MAI designation from the Appraisal Institute. He is also a registered senior property tax consultant in the state of Texas and has written numerous articles in state and national publications on reducing property taxes. He continues to set the standard in direction and quality of our appraisal products, adding services ranging from business valuations and business appraisals to cost segregation analysis for income tax reduction. Patrick C. O'Connor <a href = "http://www.poconnor.com">www.poconnor.com</a>
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Apartment Renting With Pets
If you?re a pet owner who is considering a move to an apartment there are certain things you must be keep in mind. First, whether or not your pet will be accepted by most landlords depends primarily on the type, size and personality of your pet. Dogs: If you own a large dog, apartment living is probably not for you. Not only will accepting landlords be hard to find, but your dog will not be happy in the confined space of an apartment. A large dog needs room to exercise and play, neither of which is usually available in an apartment setting. If you plan to move to an apartment, make sure your dog is one that will adapt easily to this change in environment. Usually smaller, lap dogs are the best choice. However, even smaller dogs can cause problems. If your dog barks or whines a lot you may well find yourself at odds with the landlord, as well as with other tenants. Many times your dog only causes a disturbance because it?s lonely or bored. If you?re gone during the day, you can sometimes alleviate these problems by hiring a pet walker to come in and give your dog attention and exercise. You must also keep in mind that most apartment complexes have leash laws so you will have to accompany your dog each time it goes outside. Since most complexes don?t have areas where it?s safe for your dog to run free, this is as much a matter of your dog?s safety as it the protection of other tenants. Cats: Cats are the pets of choice for apartments. Most are not as socially oriented as dogs and are quite happy left on their own. As long as your cat has a nice spot to curl up and take a nap, space isn?t an issue. More than likely your pet is a house cat so frequent trips outside aren?t required. But you must realize that some landlords do not accept cats any more willingly than they do dogs. Some have a strict ?no pets? rule. If that?s the case, don?t consider renting there. If your pet is discovered you may be evicted and/or fined. Other Pets: ?Pocket pets? such as fish, birds, and reptiles usually don?t pose a problem when it comes to renting. However, you should still check with your prospective landlord to make sure. General Tips: Landlords who do accept pets often require a pet deposit. This is intended to cover any damage your dog or cat does to the premises, as well as additional cleaning that may be necessary when you leave the apartment. If you?re searching for apartments that accept pets, there are many places to go for help. You?ll find lots of websites and message boards dedicated to this subject. You can also enlist the help of a local realtor or relocation specialist who usually have lists of ?pet-friendly? apartments. Just make sure you?re clear on the policy regarding pets before you sign any rental agreement. If you take into account your pet?s needs, as well as those of your landlord, you?ll be much more likely to find an apartment that meets your needs. Happy apartment hunting! Kyle Thomas Haley has been helping people relocate on the Internet since 1999 for STANZEEKAY Inc's Relocation Websites: <a href="http://www.apartment-rental.net">Apartment Finding</a> and <a href="http://www.relocation-guide.net">A National Relocating Guide</a> Copyright 1999 ? 2005 STANZEEKAY Inc. You have permission to publish this article free of charge, as long as the bylines are included and none of the links or content are changed.
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