Church Sales.

[Mountain Man]

We don't get too many request for big commercial jobs, maybe one every 2 years or so, but now I've got to do a new church building in my town. A BIG 'en, family life center on acreage tract. The last one we did was 2 years ago, so I'd like some current data. I have not been impressed with CoStar's data, and now they charge for general searches. So where do you buy data that's more accurate? And maybe, hopefully, covers areas other than Hotlanta?

Thanks Wayne.

 

[john mello]

In addition to town, city and/or county assessors offices as a data source, it might be informative to call the real estate office or administrative office of various denominations' diocese(s) or conference(s) in the area. Just a thought...

 

[Restrain]

I'd start with the assessor's office to see what has changed hands, then start calling commercial brokers. Often this type of sale just doesn't show up. I've done a few churches and they're the hardest thing to find. The only good thing is that there's a info firm in this area that has reasonable data...not great but not horrible either. But in areas that aren't handled by such firms, it's back to calling realtors and other appraisers.

 

[Mountain Man]

Guess I'm going to use Costar, and another private data firm. Neither one gives great data, but like you said Roger, it's a starting point. The problem with getting data is that since churches are tax exempt, many tax offices don't even bother keeping any data on them. I've got some old data from a previous chruch appraisal 2 years ago, just need a few more current sales. I'll get it, was just trying to do save a bit of driving time.

 

[Tom Curran]

If it is a newer property, why not do just the cost approach? Restricted Limited report. That is if your lender will allow for that.

Especially since church sales are made with such varying financing concessions, tax exemptions and personal property trades, sales comparison comparables are almost impossible to reconcile.

 

[John Wilson]

Originally posted by Tom Curran@Mar 14 2004, 09:37 PM
If it is a newer property, why not do just the cost approach? Restricted Limited report. That is if your lender will allow for that.

Ditto, value in use property. Though, I've never done one.

What is the purpose of the appraisal?

Just about every active church around here is built with cash.

 

[Mountain Man]

It was for a bank, construction loan. They would not accept a limited restricted, had to be a complete self-contained. But we muddled through it. B)
Much like you suggested, I did a very detailed cost approach verifying the construction contract was reasonable and legitimate, then gave it the most weight. The market approach was weak..... very weak. Ended up using some old data I had from our last church job 3 years ago, and a few new sales from CoStar that I could verify. But the problem is, churches just don't sell unless the church is moving out, or declining. IE: it's very near the end of it's going concern. Since this is in a very popular and growing area, we reconciled the two approaches using that logic. And with a construction contract in hand, plenty of solid land sales.... I’m home free.

I was just looking for a more reliable data source. You have really got to watch those CoStar comps... they are NOT accurate. <_<

 

[John Wilson]

Originally posted by M Leggett@Mar 29 2004, 09:44 AM
It was for a bank, construction loan.

I wish they would take out construction loans at my church.

We usually just get the dog and pony show that the church is $600k short of it's goal and presto!, out comes the offereing plate and the forms to increase the old stipend.

God gets expensive after a while.

 

[DB]

Mel ... tell me what county you need data for and I think I can help you ... an it won't cost you a thang ... B)

 

[Mountain Man]

Dude, I appreciate it.... but that one went out a month ago. :rofl:
But hey, send it on..... never know when the next one will come long. And I'll send ya what I've got.