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Church Appraisal Process

How Appraisers Evaluate Church Real Estate

In its most simple definition, an appraisal is an opinion rendered by an unbiased individual of the current market value for a particular piece of real estate. Certified and professional appraisers analyze the property and take into consideration a multitude of factors that help develop an opinion of the cash consideration buyers might be expected to pay, or sellers may be expected to receive, for a certain property.

Church appraisals are performed for a wide variety of reasons, which include, but are not limited to refinancing, acquisition, expansion or sale of a church property. Church appraisals also take into consideration various factors such as local building and labor costs, and comparisons with other similar facilities which have sold. Appraisers analyze the neighborhood, access, zoning, land pricing, and trends of other types of property available in the locale.

A church real estate appraisal addresses the specific characteristics of the site, as well as the amenities and physical condition of the building and site improvements. Data taken into consideration will include square footage, seating capacity, configuration of recreation/fellowship halls, classroom space, kitchen facilities and recreational areas, as well as the functionality and design and quality of materials used in the construction. Real estate appraisals involve an on-site observation of the property in order to determine its condition, quality and assess the layout. Inspectors or real estate appraisers will photograph the church property, review building plans, measure for square footage, and look for features (or issues) that impact the overall value of the property.

Appraisers take into consideration purchases and sales of similar types of properties in a given locale to develop a sales comparison in order to reconcile an estimated market value for the property.

An appraisal is an important step when attempting to finance a church property. There are many different types of appraisals and ChurchValuation can assist your congregation and your lender determine the best available options.

When it comes time to have your facility appraised, make sure the appraiser is licensed, certified, professional, and experienced in order to provide a reliable estimate of the market value of the real estate. If institutional financing is involved, note that the appraisal almost always has to be ordered by the lender, and not by the purchaser or owner of the property, in order for the appraisal to be accepted by the lender.

Lender Questions When Financing a Church