Determining the value of a commercial property is extremely important for several reasons. If you are involved in the commercial property market, a valuation is a crucial factor when determining the risk level of investing in a property either for commercial use or for investment.
A valuation will forecast what price the property will sell for within the market, helping to ascertain if it is being sold at a fair price and inform any price negotiations. In addition, a valuation will help determine how the property will perform as part of a property portfolio.
The value of a commercial property is also extremely important when determining underwriting. Most lenders want to see the value of your property, this is so they can work out the loan-to-value ratio before they commit to a mortgage. The value appraisal will provide a baseline that the lender can use to determine the loan they are willing to provide.
For existing commercial property owners, a property valuation for both current and potential value, can help inform strategic decisions about developing the property further and potentially increasing its value.
Valuations are the foundations to many financial decisions that are essential in purchasing and investing in the commercial property market.
Valuing a Commercial Property
Calculating the value of a commercial property can be complex and is best left to an expert to manage. While residential is predominantly valued based on similar, comparable statistics in the neighbourhood, determining the value of commercial property will depend on other variables in addition to the comparable method.
At BB&J Commercial, we undertake hundreds of professional valuations on all types of property every year. In addition, we are regulated by the Royal Institution of Chartered Surveyors (RICS) and are RICS Registered Valuers, meaning that we can provide a service to the highest standard and so you can have complete confidence and trust in our work. We can provide valuations for secured lending, pension fund purposes, buildings insurance, inheritance tax, dispute resolution, matrimonial and notional rent agreements plus many more.
Mark Richardson, Partner at BB&J Commercial added, “we cover a full spectrum of property, from industrial, offices, retail, residential, HMOs to development projects. This means we carry out work for a wide range of clients in both the private and public sectors, including high street banks, specialist lenders, pension funds and charities. On top of this, we have an experienced, professional team who are here to assist with any of your property needs.”
If you are considering a property valuation and would like to discuss your valuation requirements, please contact us today on:
Tel: 01332 292825