Appraising Automobile Dealerships
An automobile dealership is a special-use property that presents unique valuation challenges. To develop a credible valuation, you must not only understand the intricacies of this specialized property type, but also have some familiarity with the automotive industry and trends that affect the properties at which vehicles are sold. This 7-hour online program is intended for appraisers who are experienced in general commercial real estate valuation, and who wish to explore issues unique to automobile dealerships. It explores the relationship between the auto industry, auto dealership enterprises, and real property. It will also help those involved in financing, developing, designing and investing in auto dealership properties.
Identify a dealership property and the related important terminology. Recognize how dealership franchises work and relate to properties that are bought and sold.Identify the components of an automobile dealership and the different functions and profit centers.Determine the fundamentals of auto dealership property market analysis. Identify the questions that market analysis must resolve from the perspective of both the operator of a dealership and the owner of a dealership property (which may be a landlord who does not operate the business).Recognize the 5-step process of developing a market analysis.Identify the important criteria in analyzing and evaluating a successful auto dealership location.Identify characteristics of auto dealership improvements to develop a credible appraisal.Recognize functional features and characteristics in the current market and the markets the industry envisions in the future.Identify how the three approaches to value relate to automobile dealership property valuation.Identify property that is operated in conjunction with a going concern.Determine valuation issues specific (or common) to automobile dealership property appraisals.Identify an auto dealership’s highest and best use, the six-stage lifecycle, and how it relates to various valuation premises.Recognize the foundation for a credible analysis.Select, verify, and present comparables and identify the relevance and limitation of the sales comparison approach.Identify the various units of comparison, along with their attributes and shortcomings.Apply adjustments properly.Identify how to value the underlying land and relevance and limitations of the cost approach.Estimate the depreciated cost.Identify basic methodology for the income capitalization approach.Recognize the difficulty in finding good rent comparables and how to proceed in their absence.Develop a pro forma and income capitalization.
