What Is a Church Property Market Review?
A church property market review is an initial assessment of the real estate and the potential market surrounding it.
Review the details
The purpose is to help ownership or congregation leadership understand questions such as:
- What could the property be worth?
- Who are the most likely buyers?
- Could another congregation buy it?
- Could the property have redevelopment value?
- Does the existing zoning increase or limit value?
- Could another institutional use make sense?
- Should the property be sold now or held?
- How difficult would it be to replace the property?
- Should the sale remain confidential?
- What should be done before bringing the property to market?
The review is intended to help decision-makers understand their options before committing to a formal sale process.
Church Property Facts
Church and place-of-worship properties can have several different sources of value.
Important factors may include:
- Property location
- Land area
- Building size
- Sanctuary or assembly capacity
- Existing zoning
- Legal non-conforming use
- Parking supply
- Site access
- Building condition
- Accessibility
- Fellowship and community space
- Classrooms
- Kitchen facilities
- Offices
- Residential components
- Outdoor space
- Development permissions
- Heritage designation
- Future land-use policy
- Surrounding development
- Transit access
- Alternative institutional uses
- Buyer demand
A property may have one value to another congregation and a very different value to a developer, school, community organization or institutional user.
Understanding those different buyer groups is an important part of determining the property’s market position.
Who Should Request a Church Property Market Review?
A market review can be useful even when there is no immediate plan to sell.
It may make sense where a congregation is:
Considering a Sale
Leadership may want to understand realistic property value and buyer demand before beginning a formal decision-making process.
Planning a Relocation
A congregation looking for another property needs to understand what its current property could contribute toward the next acquisition.
Downsizing
A church with more building or land than it requires may want to compare the value of its current property with smaller replacement options.
Expanding
A growing congregation may need a larger building and may ultimately sell its existing location.
Evaluating Redevelopment
Some church properties occupy valuable sites where redevelopment potential may materially affect the property’s value.
Reviewing Long-Term Real Estate Strategy
Even where a sale is several years away, understanding the property’s current position can help with capital planning, renovations and future decision-making.
