Hiring the right commercial property valuer is crucial when you need an accurate valuation. With significant amounts of money on the line, you want someone experienced who understands your local market inside and out. Follow this guide to find the ideal valuer for your commercial property.
Ensure They Have Extensive Experience Valuing Your Property Type
The commercial property sector comprises various categories like retail, office, industrial, hospitality, healthcare, land, and more. Make sure any valuer you consider has significant expertise appraising the specific property type you need valued. For example, if you own retail space, look for valuers with ample retail valuation experience in similar markets. They will understand the nuances that affect value for that property type.
Check Their Qualifications and Licensing
Reputable commercial property valuers have qualifications from recognized industry bodies. In the United States, look for members of the Appraisal Institute with the MAI designation. In Australia, preferred qualifications include Certified Practising Valuer and Fellow of the Australian Property Institute. Licensing requirements also apply in most states, so ensure any valuer holds current licences.
Proper qualifications and licensing indicate valuers adhere to industry standards and best practices. It also shows they have the required education and experience.
Ensure They Understand the Local Area Intimately
Your valuer must exhibit deep knowledge of the local commercial property market. They should understand zoning, demographics, transportation, infrastructure, and other factors that affect value. Local knowledge enables accurate appraisals and comparisons to previous sales of similar properties.
Ideally, the valuer has completed many valuations in your metro area and specific neighbourhood. Longevity working locally demonstrates extensive market understanding.
Review Sample Valuation Reports
Ask potential valuers for sample copies of previous work valuing comparable commercial properties. Review their valuation reports to gauge the quality, accuracy, and level of detail provided. The report should clearly communicate their methodology, local market analysis, comparable sales, capitalization rates, and value conclusion. High-quality reports indicate you will receive a meticulously researched valuation.
Request References From Previous Clients
When interviewing potential valuers, ask for references from past clients. Speaking with previous clients provides insight into their appraisal process, market knowledge, professionalism, timeliness, and communication skills. Ensure the references involve valuations of similar commercial property types to your own.
By following these tips, you can identify the most qualified and experienced commercial property valuer for your needs. Taking the time to carefully evaluate valuers helps ensure you receive an accurate appraisal based on in-depth local market expertise. An accurate valuation then enables confident leasing, buying and selling decisions.
