Valuation Of A Church?
I am beginning to work with an organization that is selling off a historic church. My first question is, how do you value a church? Ideally, you could use estimate the cost to replicate the property and depreciate it, but there are so many externalities with that unique property. How do you account for it being historic? What organizations would even be in the market to buy it besides other churches?
My second question ties in with the last one. Who should I market the property to? One of my acquantinces suggested art dealers looking to set up a gallery. Any thoughts on marketing it to other churches looking to upgrade, national church organizations looking to expand, etc.? Any other ideas?
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[ Edited by commercialking on Date 02/01/2006 ]
As to your question about value, I think the key lies in what uses are permitted under current zoning for the property (besides place of worship). An appraiser would probably do valuation based on cost approach -- replacement value (not reproduction value) less depreciation (functional obsolescense, physical deterioration, etc), then add in value of the parcel as if it were vacant and put to highest & best use. I suggest you look at the current zoning ordinance and speak with the zoning officer.
Your target market would depend, of course, on uses permitted.
Nancy