Get your property appraised for an accurate valuation
Why should I get an appraisal?
In some situations, an appraisal can be worth much money. This applies to many other conditions when selling or buying a property. The latest public valuations are from 2012 and are no longer accurate. To put it bluntly, they do not reflect the value in the current market at all, and therefore, there are many good reasons to do an appraisal.
When should I get an appraisal?
An appraisal is necessary for the property owner, executive team, or board that wants a current picture of a property’s overall finances or an accurate understanding of the value of a property portfolio. Valuation reports also provide auditors, lawyers, banks, and businesses insight into the factors underlying the value. The accounts must be appraised at market value for the accounts to be accurate.
Regular appraisals can also be advantageous for possible financing, as most lenders – banks and mortgage institutions – will want to know the property’s real market value. In internal transactions, public authorities also want to know if the correct values are being used for the properties’ internal trading. This naturally also applies if properties are traded within a family.
What does the appraisal include?
The market value is determined based on an inspection of the property and a review of all relevant formalities. The value mainly depends on the location, type of property, composition of tenants, and the property’s development potential in the short and long term. It is also based on what similar properties are sold for, using concrete figures from other properties. If it adds value to the property, the potential for an alternative use is also included in the valuation.
In other words, there are many factors to consider in the valuation of properties. Therefore, we recommend choosing a broker who knows the local market and has significant experience selling similar properties. This ensures that the property is valued correctly.
What is the cost of getting an appraisal?
The fee for an appraisal depends on how many hours it takes to prepare the valuation. Size matters, but the types of leases the property contains are also crucial. If it is a purely residential property with only housing, it will mean a lower fee than a commercial property with many different tenants. But in any case, we naturally give a fixed price for the work before an agreement is made, so no one is surprised when the valuation is delivered.
RICS-Certified Brokerage Firm to Your Advantage
EDC Erhverv Poul Erik Bech was in 2011 admitted as a corporate member of RICS (the Royal Institute of Chartered Surveyors). RICS is an international organization that was founded in England in 1868. RICS has approximately 125,000 members in 146 countries and aims to ensure the highest possible professional level associated with extreme demands for ethics and morality in the practice of its members’ profession.
Jørgen Jørgensen states: “Our RICS certification confirms that we meet the sharpest international requirements for ‘excellence and integrity’ in advisory services. This means that Danish and international customers can confidently come to us, knowing that we meet the highest ethical and professional standards required of a modern, internationally oriented brokerage firm.”