5 Essential Questions to Ask Your Valuer

When seeking to understand the true value of your property, it’s crucial to engage a professional valuer to obtain a comprehensive and reliable valuation. A Valuation Report is not only a crucial certified document for communicating your property's market value to various stakeholders, but it is also a technical document that can be difficult to understand.

Therefore, before getting that valuation report, it is important to understand the methodologies they will use to assess the value of your asset, the scope of their services, and the timeline for completion.

Here are five essential questions to ask your Valuer:

     1.      What are the documents required and why?

Valuers generally need a copy of the deed, optionally a copy of the cadastral/survey plan and the sale agreement. For a projected valuation, additional documents such as Town & Country approvals (where applicable), building plans, and a quantity surveyor's report or builder’s estimate are required. For commercial buildings, Valuers also need leases/tenancy agreements and building expenses. These documents help determine the methodology used to value the property and to prove proper legal and unencumbered ownership of the property.

     2.      What is the cost of a valuation report?

Typically, the fee for a valuation report is 0.25% of the value plus VAT and a traveling fee based on the area, with a down payment of TTD $2,500 for residential properties and TTD $5,000 for commercial properties.

     3.      What is the engagement letter and the purpose?

An engagement letter outlines the terms and conditions of the valuation exercise. It includes details about the valuation service, the basis of value, our understanding of the instructions and the property, the methodology and scope, declarations and disclosures, fees, service commitments, requirements, commitments, and timing. As the valuation report is a confidential document, the engagement letter covers you as our client and, also guarantees that you receive optimal service for your payment.

     4.      What do you do when on site at the property?

During our on-site visit, we measure both external and internal dimensions, capture photographs of both external and internal areas, record observations on the property's quality and condition, and inspect for any structural breaches or cracks. These activities help us gain a deeper understanding of your property to determine its accurate value.

     5.      How do you determine the value of my property?

We utilize the appropriate valuation method based on the type of property, with the Comparable Method being the most common. This method involves analyzing similar transactions to determine property value. Property sales are scrutinized to ensure validity, and bona fide transactions are used as comparables, with adjustments made for variables such as location, size, and date of sale.

This method requires a thorough market analysis, and the comparison of similar properties is generally well-understood, accepted, and considered highly reliable. Ideally, we cannot provide the property’s value on the date of inspection. However, after completing the site visit, we conduct the necessary research and market analysis to determine the appropriate market value of your property.

Have more Valuation questions? Connect with our Valuers here.