Looking to have your commercial property valued? Here are some key considerations for a commercial property valuation.
Considerations For A Commercial Property Valuation
If you’re looking to have your commercial property valued, there are some key points you need to consider before consulting with your professional appraiser. It’s an important process to undertake to ensure that all stakeholders know the value of the property and that everyone involved gets a fair and accurate deal.
There are common errors that can prevent a valuation from proceeding without any issue. These considerations will help.
Draw Up A Terms Of Engagement Document
The Terms Of Engagement document is a means to clarify the roles of each responsible party involved in the commercial property valuation. It is an essential component of your commercial property valuation and is a thorough depiction of everyone’s responsibilities. It includes relevant information such as:
• Valuation date
• Any special considerations
Manage Conflicts Of Interest
The team preparing the commercial property valuation is legally required to acknowledge any conflicts of interest that might affect the outcome of the transaction. These could include:
• Having financial ties to the property
• Undeclared biased interest
• Being offered bonus commissions
• Landlord incentive programmes
• Personal or family relationships
Necessary Area Or Subject Knowledge
Area and subject knowledge is essential to performing a professional and accurate commercial property valuation. Market understanding will also back up the information based on proper analysis and local trends. An untrained property professional would not have thorough understanding of what can influence the property valuation, either maintaining it, diminishing it or even increasing it. They also would not understand the area and typical trends.
An accredited commercial property valuation team will guide your business through the process and also offer you the most comprehensive valuation. In South Africa, practising commercial property valuation teams are required to register with the South African Council for the Property Valuers Profession. This also requires that they adhere to all specifications and standards.
Contact our team of commercial property valuation specialists to get an accurate view of the entire process.