Valuation is important as it can help you to get a fair amount of your house of office. People may think valuation as an unnecessary process, however, it leads to all your commercial property dealings. If you ignore the valuation process on time, you suffer later.
The timely commercial property valuations can be effective as they prove to be a great addition to your small or large businesses. There are numbers of reasons for which you need commercial property valuation such as:
· Managing Company Affairs
It provides written documentation for all the improvements and investments made on the property. Similarly, the company should have the documents to showcase the real value of their property to the investors. If the company’s director has changed or the shareholders you need an updated version of your property valuation to add the currents assets of the company according to the market price value. The recent valuation report helps you to build a good relationship with the new partners.
Similarly, when a director or partner leaves the company, they will ask for their shares. The commercial property valuation will help you to divide the property equally based on the current market value.
· For Securing Loans
You also need commercial property valuation for bank funding. The first question that the bank manager will ask you is regarding the property’s current market price. If you are not aware then this will have a negative impact on your bank loans. Your unrealistic opinion will create some major issues for you. That is why property valuation is essential so that you can avail the funding benefits.
· End of lease release
If you are living on rent and do not own the property, the landowner can create troubles for you. At the end of the year, your landowner could demand some money for the repairing work. The property valuation saves you from paying the extra amount for the repair. Make sure that your repair cost should not be more than the property value.
For example, if the repairing cost is $15,000 but the value of your property is only $ 10,000, you can only claim for $10,000, not the amount you spent on the property. Commercial property valuation is beneficial for both, the landowner and tenants.
· Stamp duty
When you transfer the ownership of your property, the valuation is necessary to check the current value of the property. A value is needed is to measure the amount of Stamp Duty to be paid.
· Capital gains tax
When you sell your property, the valuation company will offer you a formal written report in order to estimate any Capital Gains Tax due. To save yourself from any negotiation, it is better to have the estimated value of the property before time.
Strategies for Commercial Property Valuation
The property valuation is based on physical research of property including the area and current market value and other valuation programs. This information will help evaluators to go through the easy commercial property valuation process and gives you an accurate value.
The property owner can be a great help for the inspection team. Here is a list what the property owner can do.
1. Go for detailed valuation
There are few companies that offer a general valuation of your property and overlook major points when making an evaluation. Do not trust that report. For best results, it is better to choose a company that offers detailed inspection of your property, keeping in mind all the other aspects of the property.
2. Be there
The best you can do for the valuation team is to accompany them during the valuation process. This will help both, the owner and the team to make an accurate report about your commercial property. You can also provide additional information to the team that will add up points to your property value.
3. Keep the property clean
Good impression on the team is necessary. It is better to keep the property clean before the team arrives at your place, especially your bathroom and kitchen and the front area of the building. Also, clean your sidewalks and paths before valuation.
4. Do not pressurize the evaluator
Do not pressurize your evaluator as it will have a negative impact on your report. He is not here to buy your building but to tell you the real value. Let the professionals do the work.
5. Hire a reputable evaluator
For your ease, it is better to hire the professional evaluators. Most professional evaluators have years of experience which helps them to gauge the property in an effective manner.