H H Appraisal and Brokerage
Fees for business appraisals are dependent on the required hours to produce the actual and appropriate type of business appraisal report. The greater potential for scrutiny of a business appraisal results in higher fees as a result of the additional work required for extensive and detailed reports. The quality, analysis and final appraised value are the same for a Level II and Level III business appraisal. The difference is that some appraisal purposes call for a very detailed business appraisal report.
To clarify, a Level II appraisal would be a shorter version of a Level III report approximating 25-40 pages in length and appropriate for matters as an S Corporation Conversion, some marital dissolution matters, estate taxation for smaller businesses or a business loan application. Conversely, a Level III business appraisal would be very detailed and generally be upwards of 50 pages. This Level III type of appraisal would be appropriate for matters as estate and gift taxation, condemnation, and partnership disputes with litigation potential.
Level I business appraisals (technically known as Restricted Appraisal Reports) are generally from 10-25 pages and are limited in scope and analysis. These Level I appraisals can be appropriate for financial planning purposes or for setting a listing price of a business that is to be sold. Below are guideline fees of the three levels of business appraisals that are offered by the H H Appraisal and Brokerage Company. Additionally, examples are given for the appropriateness of each type of appraisal. (Actual fees may vary depending on specific circumstances.)
Please do call to discuss fees for your particular business valuation needs (Hector Monge, CBA; Phone No. 619-302-6200 or 530-370-1905).
LEVEL I $1,000 to $1,500
- Acquiring or selling a business interest
- Buy-Sell Agreements
- Exit Planning
- Financial Planning
- Charitable Contributions
LEVEL II $3,500 to $5,000
- Business Purchase or Sell, with more detail and analysis
- Mergers and Acquisitions
Loan Applications (debt and equity financing)
- Buy-Sell Agreements, with more detail and analysis
- Annual Reviews
- Strategic Business Planning
- Unchallenged Divorces
- Ownership Transfers
- Exit Planning, with more detail and analysis
- Initial Public Offerings
- Fairness and Solvency Opinions
- S Corporations Conversions
- Estate Planning
- Granting of Stock Options
LEVEL III $5,000 to $9,500
- IRS Returns
- Gift and Estate Taxes
- Partnership Disputes
- Employee Stock Ownership Plans (ESOPs)
- Buyer, Seller, or other party requiring or wishing to have a very detailed report
- Creation of Family Limited
- Ad Valorem Taxation
- Breach of Contract
- Shareholder Actions
- Other Issues Related to Damage Determinations.
When one sells a business the business owner normally pays a fee to the listing broker (Seller’s representative) and a fee to the buyer’s broker (buyer’s representative). If the listing broker finds a seller without the services of another broker, the listing broker becomes both the listing broker and buyer’s broker. Fees vary depending on the listing and purchase price of a given business, but typically fees calculate to a total of 8-10%, which includes the fees for both the listing broker and buyer’s broker fees.
Real Estate Appraisals
There are many types of real estate appraisals and for this reason fees vary. Below is a guideline for real estate appraisals. Please call for a quote.
SFRs, Condos and Puds
$650 for values of up to $800,000
Residential Income Units
Multi-Family 4 Units or under from $850-$1,100
Multi-Family 5-Plus Units, By Quote
Real Estate Brokerage
Similar to business brokerage services, when one sells a real estate interest the owner normally pays a fee to the listing broker (Seller’s representative) and a fee to the buyer’s broker (buyer’s representative). If the listing broker finds a seller without the services of another broker, the listing broker becomes both the listing broker and buyer’s broker. Fees vary depending on the type of realty involved. The selling of a home will typically incur a total fee of 5-6%, which includes both the listing broker’s fees and the buyer broker’s fees. Vacant land can have total fees at approximately 10%. For commercial, industrial, agricultural, environmental mitigation land and other special use real estate please call the H H Appraisals and Brokerage Company for a quote.
Business and Real Estate Consultation
BY QUOTE. Please call for consultation.