Church - Dom? Adjustment

[Deleted member 128537]

So out of curiosity, why did the congregation move? (I am assuming it is vacated.) Is it because of the bad access to the highway? The condition of the property? Out grew the property? Etc. Any chance of re-zoning the property to residential? I have seen churches renovated to residential homes if architecture allows or size not too big.

 

[Terrel L. Shields]

why did the congregation move?

They haven't. Bought land so they can expand, have two services to seat everyone. Their big problem is there isn't a local congregation that needs that much space. One of two largest congregations. The Presbyterians need a new church but National owns their current buildings, and they will split w national over gay marriage. Their congregation is much smaller. Several churches have sold over the years as public buildings, private schools. Buildings are in excellent shape.

 

[J Grant]

If it's not a "prospective value" assignment, re a market value opinion as of eff date 06/05/2019, it's an as of X eff date market value opinion...you were calling it a prospective value, which is it.

The fact that it is 3 years market exposure is similar to if a property with 2 months market exposure, that's the time it would have taken to be on the market to sell on the X effective date. So I have no ide a what you are discounting time value of money from.

 

[Eli]

Ideally have comps with similar locations and the time value of money will be built in. I would do the adjustment you are searching for either on location (site value) and/or through qualitative analysis. I would likely do the cost approach in addition to the sales comparison approach. And I would talk to the most experienced brokers I could find who have sold the most churches in the subject area.

In theory, the cost approach alone could be the best approach if you don't have good comps. But the brokers on churches specialize and can be priceless.

 

[Eli]

Don't call them churches. "Place(s) of worship" is the appropriate terminology to use in a report. I can think of potentially other H&B uses. I have no idea but it's possible. Daycare comes to mind. It's possible that the H&B use has changed. Just something to consider.

 

[Meandering]

Don't call them churches. "Place(s) of worship" is the appropriate terminology to use in a report.

You are wrong.

Churches is the category in Marshall and Swift that is used for the cost approach.

"Places of worship" are not descriptions of real estate, which, is what we are doing.

Churches are specific to a building type.

We have churches that are being used as residences.

The building type, is still church.

.

 

[Eli]

You are wrong.

Churches is the category in Marshall and Swift that is used for the cost approach.

"Places of worship" are not descriptions of real estate, which, is what we are doing.

Churches are specific to a building type.

We have churches that are being used as residences.

The building type, is still church.

.

I don't get it either. Some people are too touchy. Or jealous or hateful or something.

I just use place of worship to keep some people's panties out of a wad.

 

[Eli]

Expand geographically to find the most experienced church or place of worship broker(s) you can find and interview them. Get some data from them.

You'll take what they give you and make it better.

 

[Eli]

Some builders specialize in churches too. They are a great source of cost data.

 

[Gobears81]

I provide both and justify the discount rate. I am asking what basis do you support the rate upon?

If the market data is suggesting $50 per square foot for the (current) effective date, that says nothing in itself about the value three years from now. That value could be 20% more, 20% less, or the exact same. Determining the appropriate discount rate at say 8% when the prospective value is less than the current value wouldn't yield current market value. Perhaps you are thinking of value in use?