5.0. HRSR 04-22-2002 - Laserfiche WebLink

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UAL 410 Having isolated the land and the are attached or installed to the building values from the total, the C C land and building in a rather appraisal team can deal with the permanent manner. It is our Fixtures, on the other P remaining fixed assets: furniture, fix- view that fixtures and equipment tures, and equipment. Furniture hand, are articles that are compensable assets and items are personal property that are were once personal should be valued separately from readily moved and are not in any way property but have the real estate. attached to the real estate. Fixtures, Fixtures and equipment may on the other hand, are articles that since been installed or be movable or immovable. The were once personal property but have attached to the land electric fuel pumps and car vacu- since been installed or attached to or building in a rather urns in our gas/convenience store the land or building in a rather per- example are movable; the owner permanent manner. manent manner. Equipment, anoth- can move them to the new site er form of fixed asset, is generally not and continue to use them. The categorized as real estate and usually cement tank islands that are is not physically or legally attached to the prop- designed to protect the electric fuel pumps and erty. Sometimes equipment can be categorized as create a traffic pattern on site for the conve- a fixture in the sense that it has been installed or nience/fuel operation are immovable. It is attached to the land or building. An example of unlikely that they could be removed without • each of these three categories of assets is damaging the real estate and they, themselves, described in the following scenario. would be damaged in the process. In the condemnation of a gas/convenience store, the appraisal team finds many examples of Conclusion the types of fixed assets. A gas/convenience store Professional real estate appraisers who regularly usually has an office for the manager, which conduct condemnation appraisals must become includes a desk, chairs, filing cabinets, and other familiar with the various forms of compensation. commonly used office equipment: appropriately As team leader, the real estate appraiser must be categorized as furniture for appraisal purposes. familiar with the special property components These are assets that can be moved to the that are not standard in the appraisal of real replacement facility; the costs of the move are estate. Involving a fixture/equipment appraiser is eligible for reimbursement under the Act. recommended. When the appraisal team, as a Gas/convenience stores may have many different group, inspects the property, the owner and ten- types of fixtures, but for this article we will men- ant are ensured of a more fair and accurate valu- tion video shelving, a food snack bar, a cooler, anon of the condemned property and its various components. In the next issue of Valuation and special cigarette shelving as examples of fix- tures that have been installed and attached to the Viewpoint, readers will benefit from the experiences Aiik real estate that are specific to this operator's of relocation experts, Salo Ale of Faegre d' Benson up business plan. Equipment, such as the electric and Steve Eriksson of Eriksson Commercial Real fuel pumps, car vacuums, and cement tank Estate, Inc. Mr. Ale and Mr. Eriksson will present a islands, are fixed assets that are not real estate but case study and answer frequently-asked questions. m VOLUME 7, NUMBER 1 • SPRING 2002 VALUATION VIEWPOINT 15