“When you measure what you are speaking about and express it in numbers, you know something about it, but when you cannot (or do not) measure it, when you cannot (or do not) express it in numbers, then your knowledge is of a meager and unsatisfactory kind.”Sir William Thompson, Lord Kelvin (1824-1907)
A purchase of any asset can be the most significant transaction some could ever consider. It doesn’t matter if it’s a primary residence, an additional vacation home or an investment like bonds or jewellery, these all are a complex transaction that requires multiple people working in concert to see it through. Intellectual property and intangible asset issues abound throughout the business world, touching nearly all aspects of a company, from product development to human capital, and staff functions such as legal, accounting, finance to line operations such as R&D, marketing and general management. This wide diversity of IP applications and stakeholders is a leading contributor to the complexity of managing IP, as each field has its own legal, regulatory and practitioner history.
One aspect all these disciplines have in common is the need for valuation. Valuation provides the potential to enhance our knowledge of intellectual property and to bridge the gap between these disciplines by providing a common set of methods to capture and describe the business, legal and financial aspects of the intangible asset in question. A service as Appraiser Now provides the appraisal experts who pull information on local building costs, the cost of labor and other factors to derive how much it would cost to build a property similar to the one being appraised. This estimate often sets the upper limit on what a property would sell for.
To determine the true status of the property, they first complete a thorough inspection. They see aspects of the property first hand, the location, and so on. To ensure they truly are present and are in the condition a typical person would expect them to be. The inspection often includes a sketch of the floor plan, ensuring the square footage is proper and conveying the layout of the property. Most importantly, the appraiser looks for any obvious amenities – or defect that would affect the value of the property. The process taken by these experts of Appraiser Now demonstrate that how a small number of methods can be used to value your property or an asset across the range of issue areas and assess strengths, weakness, critical assumptions and practical applications of each.
Once the site has been inspected, they use two or three approaches when determining the value of real property: a sales comparison, a replacement cost calculation and an income approach when rental properties are prevalent. The cost approach is also the least used method. The estimate of value at the bottom of the appraisal report is not always what’s being paid for the property even though it is likely the best indication of a property’s value regardless, the appraised value is typically employed as a guideline for lenders who don’t want to loan a buyer more money that the property is actually worth.
These decisions help you determine appropriate price level of property’s you are considering for buying or selling, provide in-depth current and historical knowledge of properties and trends throughout the marketplace and protect the Asset owner.