The hidden benefits of a good valuation (and valuer)

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Investment trusts, banks, insurance companies, owner-occupiers, private owners…if you are one of them, chances are you will require a real estate valuation someday. 

An article by Ardalan Azari, Associate at Cushman and Wakefield Belgium 

More than an accurate value  

Investment trusts, banks, insurance companies, owner-occupiers, private owners…if you are one of them, chances are you will require a real estate valuation someday. This will most likely occur in a transactional context, where you intend to sell, buy or finance the acquisition of a property, or for reporting purposes within regulated companies. 

Consequently, what is it that you expect from your appraiser? Certainly to provide you with an accurate value! However this should not be your sole expectation. 

Indeed, valuation is not only about determining a "price", it is also about giving advice to the client. Advice such as opinion on the rental value, the incentives to grant in order to attract occupiers, the required investments and budgets to remain competitive, the marketability or saleability of your assets, the fiscal impacts of different deal structures, etc. 

The key to the success of your real estate 

The strengths and weaknesses of your properties, as well as the opportunities and threats related to the market should also be identified. For assets at the end of their life cycle a valuation report can also identify the highest and best uses by providing analyses of redevelopment and reconversion scenarios. In this way, your valuation will become an essential elements to your real estate strategy, helping to maximise the performances of your assets. And in a dynamic and constantly moving market, regular updates are paramount in order to take latest trends, threats and opportunities into account. 

For all those reasons, choosing the right appraiser is an important decision. Companies with competence and track record, as well as a solid understanding of the transactional world, should be crucial elements for your selection. Additionally, the appraiser brings you an independent and neutral vision of the performance of the market and your asset within that market. Therefore, a valuation by a recognised company can be a determining tool to your negotiations with third parties, be they sellers, buyers, tenants or other stakeholders. 

In the short-term and in the longer run, your valuer may become a strategic adviser in most of your real estate decisions.