How does an appraiser estimate salvage value for commercial real estate?

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How does an appraiser estimate salvage value for commercial real estate?

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Although I cannot answer your question completely, keep in mind that buildings DO NOT appreciate. Real estate appreciates. Buildings and other improvements depreciate. This is why an owner will make repairs; improvements are constantly depreciating. The price one can get on the market for the building and improvements is typically called market value. Salvage value is the value an asset will realize at the end of its useful life. Salvage value and market value MAY correlate-if the market for the property in its current condition is the salvage market. In which case, a market analysis would be helpful.

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