{"id":7487,"date":"2024-10-15T08:47:29","date_gmt":"2024-10-15T08:47:29","guid":{"rendered":"https:\/\/listselfstorage.com\/us\/industry-insights\/?p=7487"},"modified":"2026-02-13T10:27:14","modified_gmt":"2026-02-13T10:27:14","slug":"for-what-its-worth-mai-versus-bov","status":"publish","type":"post","link":"https:\/\/listselfstorage.com\/us\/industry-insights\/for-what-its-worth-mai-versus-bov\/","title":{"rendered":"For What it\u2019s Worth \u2013 MAI versus BOV"},"content":{"rendered":"


\nThere are countless reasons why a property owner is looking for a current market value of their real estate asset(s) \u2013 many involving life events such as death, divorce, partnership disputes\/dissolutions, retirement, wealth or estate planning, debt settlement, default, recapitalization and more. Sometimes it is simply when an owner has decided to sell.<\/span><\/span><\/span><\/p>\n

Determining a current fair market value can be achieved by working with a specialized real estate broker familiar with the type of property involved or may require engaging a licensed real estate appraiser to prepare a detailed appraisal report.<\/span><\/span><\/span><\/p>\n

Factors involved in determining a current market value are many, including the location, size, age, condition and quality of a property and whether additional new facilities are under construction, in planning or currently in lease-up within a subject property\u2019s trade area (usually considered 3-miles).<\/span><\/span><\/span><\/p>\n

The primary determinants of market value are current income, potential future income and the current capitalization (CAP) rate in a market, all subjects covered in detail in separate articles.<\/span><\/span><\/span><\/p>\n

Appraisal:<\/span><\/span><\/b><\/span><\/p>\n

If you require a full appraisal, the most experienced appraisers are MAI Appraisers (MAI = <\/span><\/span><\/span>Member, Appraisal Institute) who have met strict testing standards and experience requirements. Beyond finding an MAI appraiser it\u2019s critical that they have experience appraising self-storage assets (or whatever property type is involved) as there are many nuances to appraising niche real estate.<\/span><\/span><\/span><\/p>\n

Appraisals can cost anywhere from $3,000 – $6,000+ depending on the complexity. The resulting appraisal will generally be 100+ pages and include significant property level and market-specific details, utilizing three different approaches \u2013 Income Approach, Comparable Sale Approach and Replacement Cost Approach. Each of these sections will include supporting details and the appraiser will reach a conclusion on which approach is most suitable for the specific assignment for which they were hired. Appraisals are the most detailed and accurate statements of value which may be used for almost any legal requirement.<\/span><\/span><\/span><\/p>\n

Broker Opinion of Value:<\/span><\/span><\/b><\/span><\/p>\n

If you are looking to determine a current fair market value, a Broker Opinion of Value (BOV), sometimes also referred to as a Broker Price Opinion (BPO) may be an excellent, and generally free, option. A BOV should be prepared by an experienced real estate broker knowledgeable in the specific property type involved. Producing a BOV involves the collection of<\/span><\/span> property condition details, financial and operating reports (profit and loss statements, unit mix reports, management reports, current and historical occupancy data).<\/span><\/span><\/span><\/p>\n

The focus of my team has been on the self-storage industry for the past 15+ years and we prepare<\/span><\/span> 30-50 BOV\u2019s annually on a nationwide basis for clients. As a team engaged in self-storage advisory and brokerage nationwide, we have in-depth knowledge of what assets will sell for in the market today. A BOV focuses primarily on the investment sales market and maybe 10-30 pages in length<\/span><\/span> with a conclusion of value, generally within a narrow range, based on the current investment sales market where the property is located.<\/span><\/span><\/span><\/p>\n

About the author:<\/b><\/span><\/span><\/span><\/p>\n

Tom de Jong<\/strong> is Executive Vice President with the de Jong I Becher Team at Colliers International<\/strong><\/em>, one of the top commercial real estate firms involved in the valuation, sale and advisory work within the self-storage industry across the US. With questions or to find out what your property is worth today, email Tom at\u00a0<\/span><\/span><\/span>tom.dejong@colliers.com<\/strong><\/span><\/a> <\/span><\/span><\/span>or text\/call 408.724.0337.<\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

There are countless reasons why a property owner is looking for a current market value of their real estate asset(s) \u2013 many involving life events such as death, divorce, partnership disputes\/dissolutions, retirement, wealth or estate planning, debt settlement, default, recapitalization and more. Sometimes it is simply when an owner has decided to sell. Determining a current fair market value can be achieved by working with a specialized real estate broker familiar with the type of property involved or may require engaging a licensed real estate appraiser to prepare a detailed…<\/p>\n","protected":false},"author":13,"featured_media":6232,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[21],"tags":[],"gutentor_comment":0,"_links":{"self":[{"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/posts\/7487"}],"collection":[{"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/comments?post=7487"}],"version-history":[{"count":1,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/posts\/7487\/revisions"}],"predecessor-version":[{"id":7488,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/posts\/7487\/revisions\/7488"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/media\/6232"}],"wp:attachment":[{"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/media?parent=7487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/categories?post=7487"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/tags?post=7487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}