Why You Need a Professional Childcare Property Valuer
Selling a childcare centre involves a complex procedure and valuation of a property is one of the most important aspects of it. There are many factors to take into consideration while calculating the value of a property.
Using a professional property valuer is a wise decision because they can provide you with the best and true value for your childcare centre.
You need the help of a professional valuer for various reasons:
- Legal formalities
- Transfer of ownership
- Pre-purchase or pre-sale valuations
- Calculation of capital gains tax
- Drawing up a partnership or family settlement
- Obtaining mortgage or loan security
Factors Considered by a Professional Valuer
Whether you want to sell your property or apply for insurance, a professional valuer is essential in determining the property value. Here are some of the factors which are taken into account by a professional valuer:
Location and extent of property
The valuer calculates the total area of the land and records the physical location of the property. The locality and environment matter. An important point to remember is that the value of the land increases with time whereas the value of the property depreciates.
Condition and structure of the building
The valuer not only evaluates your property but all other properties in the area. The reason is that the value of your property increases if the surrounding buildings are commercial properties. However, the valuer does not take into consideration factors like plumbing and electric supply.
Return on investment
The valuer calculates the rent per square metre and compares it to the market rent in your area. This is done so that you can get a realistic idea as to how much rent you can expect to get after leasing out your property. The valuer also takes into consideration the outgoings which can be used by the future tenants. The estimate about your annual yield from the property can help you to plan your future investment.
The property valuer also provides a list of assumptions that they have made while valuing the property. These areas need an inspection from other professionals like architects and engineers before you can come to an accurate value for your property.
How to Choose a Property Valuer?
You should use a property valuer who has a Certified Practicing Valuer status. Such a valuer has experience and their reports are admissible in legal matters and as a reference for other professionals.
Tips for Selecting a Property Valuer
- How much do they charge? – price alone shouldn’t be a major factor when selecting a valuer
- Ensure the company is registered
- Ensure the property valuers are qualified and members of an industry body – Australian Property Institute
- Enquire about their experience, their knowledge of your industry, local market
- Is the valuer registered in your state your property is located in?
- Do they have professional indemnity insurance?