What is a BOV, and why do I need one?
Apartment building owners, like all investment property owners, make one of four decisions regarding the status of their properties every day. Those decisions are to either:
- own and operate
- 1031 exchange into another property, or
- to sell outright.
But as with all informed decisions these owners must have the intel before deciding on their course of action.
The single most important component of these data is property value. This affects equity based decisions, taxes, financing and more.
So it is not uncommon for many owners to obtain periodic valuation reports. And while appraisals are most often required by lenders in the context of a property sale, even these reports can be biased towards the numbers appearing on a purchase contract.
The best commercial brokers recognize the importance of keeping their clients up to date on values and offer these valuation services.
Who better qualified than multi-family brokers closing multiple apartment building sales and millions of dollars in annual transactions to provide this information?
Using market experience and daily transactional involvement allows top brokers to use relevant data in the context of the market to create current time valuation reports These Broker’s Opinions of Value or “BOVs” are building specific time-sensitive studies that measure a variety of data to create a comprehensive report. Combined with the static measurements of recent sales, experienced brokers utilize income and expense data along with prospective income scenarios to project optimal values. Insightful observations including minor repairs, adjustments to operations, possible rent increases and other modifications to operations are included in thorough BOVs to assist ownership in optimizing values- whether owners are looking to sell or not.
Beyond the comprehensive report the brokers at Kasten Long Commercial Group are able to provide insightful market observations.
Once valuation is determined it is important to provide market perspective allowing ownership the perspective necessary to consider market cycles, investment trends, economic fluctuations, financing and more. While concise and accurate information is provided in our BOVs, the context and perspective provided by our brokers enables property owners the ability to execute effective and equitable decisions in a timely manor.