Property Valuation
FOR CUSTOMERS WHO ARE EVALUATING A PROPERTY PURCHASE SUCH AS A HOUSE, VILLA, DETACHED HOUSE, APARTMENT BUILDING, LAND PLOT, HOTEL, LAND OR COMMERCIAL PROPERTY WE OFFER OUR PROPERTY VALUATION SERVICES TO GIVE YOU PEACE OF MIND BEFORE FINAL PURCHASE DECISION.
The Process
What you should know about property valuation
Valuing real estate assets - either commercial or residential - can be difficult because almost no two properties are exactly the same. Each property has unique characteristics and features with different square meters, number of bedrooms or bathrooms, views, upgrades or infrastructure, net operating income, or location.
The dynamic nature of the real estate market, is one of the largest determinants in the valuation assessment process. This unpredictable nature of the market, it's the reason a detached house in Chrissi Akti can be hundreds of thousands of euros less than a nearly identical property in Kounoupidiana, Akrotiri area. The local character of the real estate market matters. Areas with a high supply and low demand will have lower values compared to areas with high demand and low supply.
Methodologies & Scope
The most widely accepted method for valuing property is an appraisal survey, which is used in both commercial and residential real estate assets and can only be conducted by a licensed and experienced appraiser.
Real estate professionals, such as real estate agents and engineers, are able to provide other, less formal methods of assessing and forecasting a property's market value, including a comparative market analysis (CMA) – which estimates a property's value based on recently sold comparables or broker's price opinion (BPO).
BPO is based on the characteristics of the property and is not representative of an official appraised value, nor will it necessarily correspond to a property's market value.
Usually, property valuations are used to determine:- A fair market value, which is the as-is value of the property in the market and can be used to facilitate owners' and sellers’ decision making.
- Potential future value, which is most frequently used with investment properties such as commercial real estate assets or luxurious rental villas.
- The actual or replacement cost value, which is how much a property would cost to replace or the actual cost to build the property, typically used for insurance purposes.
- The assessed value includes a detailed survey to provide a clear picture in regards to the property taxation.
Property Appraisal Request
Valuation Process
If you are looking for a property valuation, determine what type of valuation is needed for the specific property. This will help you determine what type of real estate advisory is needed, like a formal appraisal from a licensed appraiser, a real estate agent’s opinion of value, or a potential future value, or a simplistic projection.
The valuer obtains all relevant documents from the client e.g. deeds, survey maps, building plans etc. These must be verified through searches at the relevant offices (Lands Registries, Local Authority Registries, and Cadastre etc).
With an efficient registry, this may take a few hours. However searches are known to take as long as three weeks, and in extreme cases much longer.
The valuer carries out physical inspection (autopsy) of the property, noting all the attribute of the property and confirming that the property is located as per the survey map.
The valuer also notes the neighborhood characteristics and records any other significant information from the site at this stage.
The time-frame here depends on the size of the property, the location and distance of the subject property and the valuers experience of the area and may take a few minutes to several days.
The valuer gathers as many as possible data, recent sales, transactions, and construction cost data etc. The information is analyzed and in synergistic way with Big Data Analytics methods is applied to the subject property to arrive at the values.
These are reconciled and a final value estimate is made. This may take a few days to several weeks depending on the size of the property.
Usually a typical Property Valuation report includes the following:
- The estimated fair market value of the property.
- Approach to fair market value.
- Property overview.
- Risks and issues.
- Summary of local market trends.
- Analysis of subject property “highest and best use”.
- Big Data Analytics Prognosis.
- Value conclusions are budget estimates where possible.
- Other considerations.
Depending on the type of the report this may take a few minutes to several days. In special cases especially for larger and technical reports a draft report may be presented to the client for comment and feedback before the final report is issued.
Our property valuation report will be sent by email in PDF format comprising text and photo references.
- Your request must represent a real person, registered business or entity.
- Only one request per person or business may be verified.
- The documents provided must be up-to-date and legally valid.
