Animal hospitals are a complex special purpose or "limited market" property with a number of unique value-influencing physical, functional and locational characteristics. A basic understanding of veterinary practice valuation, veterinary industry trends and supply/demand for veterinary services is critical to an accurate appraisal of veterinary real estate.
Most animal hospital appraisals are seriously flawed. Some appraiser's rely upon "proxy" sales of small commercial or medical office buildings instead of actual animal hospitals because research is time-consuming, and there's a financial incentive to quickly move on to the next assignment. This generic approach, while sufficient for the common office or retail building, often leads to a significant valuation error when applied to animal hospital facilities.
All of our appraisals include a Sales Comparison Approach with animal hospital building sales.