Need help figuring Valuation of Building (Minot, Crosby: comparable sales, hotel, income)
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Assuming its this building? A valuation is hard, because there's no comparables. How many billable rooms will it have? Take the value of a motel in Crosby, proportion it to your room numbers, and divide the valuation by half. Until it shows cashflow, unfortunately it probably won't estimate very high.
You might want to consult with a local realtor who has access to the MLS system out of Minot to get the best idea of what comparables have sold for. You would want a competitive market analysis from them.
It's worth what your banker is willing to accept as the value.
Really the only true way is to have a commercial appraisal. Which is going to be a challenge as others have said with no comparable sales.
They may base the value on one of, or all three of these items: Comparable sales, replacement cost, or value based on the amount of income it can produce.
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