Real Estate Valuation

A real estate purchase is the largest, single investment most people will ever make. Many proceed without ensuring that the value of the real estate is proportionate with the amount that is being paid. Estimating the value of real property is important for a variety of endeavors and only a practical understanding of the importance of real estate valuation can enable an investor to make a wise decision on real estate investment.

Real Estate valuation may be considered the heart of all real estate activity. The basic purpose of an evaluation is to estimate a particular value. Some of the ways of estimating the value are:

Transaction – this assists buyers and sellers to arrive at a fair and equitable sales price.

Financing – the lender measures the economic soundness of the real estate projects.

Taxation – assists government bodies to establish the proper relationship between land and improvements for real estate taxes (this only applies to countries that impose real estate taxes).

Insurance – this is based principally upon the cost of replacement.

Rental – assists the landlord and tenant to estimate market rents for the negotiation of leases.

Property value is important when you are looking to purchase real estate overseas. To determine the value of property, you will need to consider a number of factors and questions, such as:

What are the other properties currently selling for?

What would be the cost to replace the property today?

How much would it take to operate and maintain the property?

What rental income might the property earn?

Does the property’s use conform with its permitted use?

Is there supply and demand?

What might be the highest and best use of the land?

We have a team of real estate professionals who are experienced in providing valuation deal related services, who will help to manage the appraisal process on your behalf and provide you with:

A detailed report and analysis, including market analysis

Examination of yield and rental rates

Site analysis

A calculation of the costs

Financial due diligence

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