[FL] Valuation of a church and affiliated school.
So, I have a local church board interested in valuation as if they were to sell as a going concern. It’s a church and an affiliated school in one location. I haven’t dealt much in commercial or business brokerage, and don’t know how the tax implications of this being a church and school will affect things. 

Anyone have any thoughts or insights on this? What questions should I be asking? How will this differ from a typical business brokerage and/or commercial deal?
[{"id": "ff7ncue", "text": "You should be asking for the contact information of appraisers/brokers who know this area.", "replies": [], "depth": 1}, {"id": "ff7nnot", "text": "I had a church in a similar situation approach me. There is very little market for church and school buildings. Not nothing, but very little.\n\nThe base line is the value of the land (i.e. empty lot) minus the costs of demolition. If the land is very expensive, then your in good shape. \n\nIf the land isn't that valuable, then you have to be cheaper than it would cost to build from the ground up.", "replies": [{"id": "ff7ojot", "text": "Yeah, for the church, that makes sense. But the school is on the same parcel and part of the same deal, and it generates profit through tuitions, which complicates things a bit I think. I'm not sure if the church itself and the school are regulated differently from a tax perspective. In other words, I'm not sure if I should just consider the school part of the church. I will start by valuing the land and then looking into building costs for the church. Will try to then figure out the school after that. I have some homework to do :-)", "replies": [], "depth": 2}], "depth": 1}, {"id": "ff7owys", "text": "I've appraised nearly 50 religious facilities. Some have classrooms or charter schools attached. \nA church has no going concern as it's not a profit generating business. They pay no taxes not even real estate taxes. Any income is from its congregation which can be very fluid and disappear at the drop of the hat with a change in leadership. \n\nThe church probably has value as real estate but not a business. The problem with churches is that they are rarely the highest and best of the land. I suggest you find a well regarded local appraiser for a real estate valuation.", "replies": [{"id": "ff7pjb2", "text": "Excellent - thanks! One issue that may make this one unusual is that it also has a school on premises that generates profit via tuitions. Is that still just considered part of the church? I realize you mentioned charter schools in your response, but I'm not sure how that may affect valuation.", "replies": [{"id": "ff7vl3a", "text": "The charter schools that I have dealt with pay rent that then is capitalized in the real property valuation.", "replies": [{"id": "ff7wcl6", "text": "Ok - that really helps. Thank you!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ff7t8ou", "text": "You don't seem to be hearing what people are saying to you. I value these building for the secondary market on a regular basis. First you need to figure out which valuation model to use. If you can figure out why this is important then you can proceed. If not get some help from an appraiser or broker.", "replies": [{"id": "ff7untx", "text": "I understand. I would use cost approach. The school is what threw me off, but I think it should just be considered part of the church. I will develop my own number and run it by an appraiser to see if he agrees.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ff9ogx7", "text": "&amp;#x200B;\n\nlots of good answers here. one major factor to consider is that there may be a deed restriction as many churches were built from donations and as such have a restriction that it can only be used as a church.", "replies": [{"id": "ffa3l8j", "text": "Excellent point! Thank you for mentioning this!", "replies": [], "depth": 2}], "depth": 1}, {"id": "ffvrh4m", "text": "If the school is \"affiliated\" with the church, wouldn't it be a non-profit school?  \n\nI agree with someone else who said this is an appraisal question, not a \"going concern\" question.  You definitely need to look at the deed and other recorded records to see if there are any restrictions. If the church belongs to a denomination, often the denomination has certain rights or control over the sale of the property.\n\nYou also need to know the zoning to get an idea of the highest and best use of the property.  The value could be in the land.  Some churches are located on oversized parcels and extra value might be realized by selling off excess land if it is developable.  \n\nDepending on how the school building is set up and conditions of your local market, the school portion could have value to be sold as a school. I worked on a project a couple years back to try and help a small (80 student) private school relocate.  The market for smaller school properties or buildings that could be adapted to school use was pretty active.", "replies": [], "depth": 1}]