soapy
Senior Member
I recently had one of my washes appraised and wanted to pass on some info to the group. There were no wash sales in my area for years to compare with so income and cost of building were used for 2 of the 3 normal methods.
The appraiser used a appraisal industry book to determine build costs. This book gave a value of $100 per square foot for the cost of a carwash building with roughed in electrical and plumbing. This did not include any equipment. For the equipment it gave a cost to of $39,500 per SS bay and $122,000 per automatic bay. Vac islands with 2 vacs cost $10,000 per island.
If you add these together along with the value of the land you get a good idea of what it cost to build a carwash now. If you have an older wash depreciation will need to be figured in. 20 years on equipment and 40 years on the building according to this appraisers guide book.
We all hope that our land values will climb as our depreciation on building and equipment cause its value to decline.
In my case the called value of the carwash considering both income and cost to build factors ended up around 4.5 times the gross sales.
The appraiser used a appraisal industry book to determine build costs. This book gave a value of $100 per square foot for the cost of a carwash building with roughed in electrical and plumbing. This did not include any equipment. For the equipment it gave a cost to of $39,500 per SS bay and $122,000 per automatic bay. Vac islands with 2 vacs cost $10,000 per island.
If you add these together along with the value of the land you get a good idea of what it cost to build a carwash now. If you have an older wash depreciation will need to be figured in. 20 years on equipment and 40 years on the building according to this appraisers guide book.
We all hope that our land values will climb as our depreciation on building and equipment cause its value to decline.
In my case the called value of the carwash considering both income and cost to build factors ended up around 4.5 times the gross sales.
