Chattels vs. Fixtures
Chattels - items which are movable, such as chairs, desks, most machinery, etc.
Fixtures - items which form part of the property and are not movable, such as walk-in coolers in the concrete floor, furnaces, etc. Appraisers will only appraise fixtures - chattels are not included in market value.
Real Property vs. Business Assets
Real Property - fixed property - principally land, buildings, and fixtures.
Business Assets - chattels which allow a business to operate, such as delivery vehicles, display cases, goodwill, etc. Business assets, including goodwill, are not considered in market value.
Coverage and Density
Coverage - Imagine slicing a building so that only the "foot print" remains. Now measure this building foot print and divide by the total site area. The result is the percentage of the site area that represents the building foot print. The higher this percentage, the less area you have for
parking, landscaping, shipping/receiving, etc.
Density - The total above grade building area divided by the total site area. If the building is one storey, then coverage and density ratios are
identical.
Real Estate vs. Appraised Values
Real Estate Value - the price that a property sells for in an open market transaction.
Appraised Value - market value assigned by an appraiser.
These two values should be similar. However, they typically are not. Some of the reasons are:
(1) Real estate sales sometimes do not reflect open market transactions:
(2) Market conditions change.
(3) Real Estate sales included business assets and/or chattels.
(4) The Appraiser does not have experience to appraise the property.
Neighbourhood vs Area Retail Plazas
Neighbourhood - Typically not on major thoroughfares or within the fringe of retail areas. Stores tend to be smaller and are mostly convenience in character. Examples would be variety stores, dry cleaners, take-out restaurants, etc.
Area - Typically are on major thoroughfares or within retail areas. Stores tend to be variable in size. These stores can be either street level or within a multi-unit retail mall.
Chattels - items which are movable, such as chairs, desks, most machinery, etc.
Fixtures - items which form part of the property and are not movable, such as walk-in coolers in the concrete floor, furnaces, etc. Appraisers will only appraise fixtures - chattels are not included in market value.
Real Property vs. Business Assets
Real Property - fixed property - principally land, buildings, and fixtures.
Business Assets - chattels which allow a business to operate, such as delivery vehicles, display cases, goodwill, etc. Business assets, including goodwill, are not considered in market value.
Coverage and Density
Coverage - Imagine slicing a building so that only the "foot print" remains. Now measure this building foot print and divide by the total site area. The result is the percentage of the site area that represents the building foot print. The higher this percentage, the less area you have for
parking, landscaping, shipping/receiving, etc.
Density - The total above grade building area divided by the total site area. If the building is one storey, then coverage and density ratios are
identical.
Real Estate vs. Appraised Values
Real Estate Value - the price that a property sells for in an open market transaction.
Appraised Value - market value assigned by an appraiser.
These two values should be similar. However, they typically are not. Some of the reasons are:
(1) Real estate sales sometimes do not reflect open market transactions:
- the buyer or seller has special reasons to sell or buy.
- the buyer or seller does not have full knowledge of the market.
- financing impacts.
(2) Market conditions change.
(3) Real Estate sales included business assets and/or chattels.
(4) The Appraiser does not have experience to appraise the property.
Neighbourhood vs Area Retail Plazas
Neighbourhood - Typically not on major thoroughfares or within the fringe of retail areas. Stores tend to be smaller and are mostly convenience in character. Examples would be variety stores, dry cleaners, take-out restaurants, etc.
Area - Typically are on major thoroughfares or within retail areas. Stores tend to be variable in size. These stores can be either street level or within a multi-unit retail mall.