Commercial properties and their value
How much is a business property worth? This question can be raised for various purposes. For example, for the purpose of buying or selling a business property, taking out a mortgage, the insurance policy, or the economic value for the tax authorities. You can come to us for an expert appraisal, with an extensive and well-founded report.
An expert valuation
During the appraising of your business premises our appraiser pays attention to aspects such as the state of maintenance, the square meter surface of the premises, the construction state, the quality of the materials used, the degree of insulation, the rights and obligations resting on the location and the environment. In addition, our appraiser identifies other circumstances that may influence the value, such as price developments in the market, zoning plans and macro-economic conditions. You will receive an extensive (validated) appraisal report with all our findings. In most cases, the report will be sent to you within 1 week after the confirmation of the assignment. If desired, we can carry out the written report within approximately 24 hours.
We can carry out all possible appraisals for you. For homes as well as businesses. Our reports are acknowledged by all lenders.
Consultancy
In recent years, our firm has proven to add value to non-profit and profit organisations such as housing associations and (large or small) institutional investors, in financial, legal and market terms. We are regularly consulted from the very first stage and provide tailor-made market research and investment analyses. Demonstrable expertise, understanding and empathy with our clients and their objectives and, of course, a flawless reputation are the starting points for an objectively substantiated valuation. Our appraisers know how to value the necessary criteria and parameters and can translate their proven expertise into clear and expert analyses and reports. If you would like more information or an appraisal, please contact us.
Get a free valuation of your commercial real estate
Would you like to know the approximate value of your property but is it not necessary for a mortgage or insurance or for tax authorities? Then make an appointment for a free valuation. Following a brief inspection of the property and research on the price developments in the neighbourhood/market, you will receive an indication of the current value of your business premise. (Please note that this valuation is not a validated appraisal).
The valuation process, in theory
Greek scholar Plato mentioned the determination of a value as one of the most difficult issues. Valuation theory has its origins in both economics and law. In the theory of valuation, the concept of value is defined as follows:
"The value of an object is the most probable price that can be obtained for the object in an open market situation, given its physical, economic, social and legal quality.
The appraiser often argues from an economic point of view. Depending on the assignment, the nature of the property and the location and the legal status can play a more or less important role. In principle, property appraisals are microeconomic activities. The appraiser looks at the interaction between buyers and sellers in a market environment, in order to determine the value. However, it is impossible to do this properly without looking at the macro-economic influences and seeing how they affect supply and demand in the market. In order to determine the value as accurately as possible, we need up-to-date data on price development and affordability, which is why you will always find the most recent market situation in our reports. In addition to price developments and affordability percentages, we also look at consumer confidence, unemployment and the development of the economy.
The method used to measure the mentioned interaction between buyers and sellers is the comparative method. This method is characterised by comparing various objects whose transaction characteristics are known. In order to be able to compare the transactions, which are often very different from each other, they are made mutually comparable, objectified as it were. We do this almost permanently on the basis of a reference set, on which the price level can be mapped out exactly and substantiated. For more unique objects we also visualise various other parameters, in order to have as many indicators as possible, for example via the residual land value, the price per m2 of land.
Real estate (and its occupants/users) are heterogeneous, so comparability is not easy. Especially in a moving market this requires a lot of experience. The classic 'fingerspitzengefühl' therefore remains indispensable in practice and can only be learned by doing. The differences are determined by what we call "the differences internal object quality", these consist of location, size and the zoning plan which can have a positive or negative influence. Also very important in determining the value of the property is the market in which it is traded. For the real estate market, the following characteristics are important:
- Lack of transparency; transactions are not fully public
- Immobility; location-relatedness makes physical quality subordinate
- Delay in the price response; e.g. due to interest rate fluctuations
- Lack of consumer control of conditions; stock market
- Emotional bonding
Bearing the above characteristics in mind, we can assume that determining the value of property is not an exact science. It is therefore the task of our valuers to create as much transparency as possible.
Testimonials from our clients
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