Property valuation involves estimating the value of a property and then delivering an expert opinion in writing. The written opinion may state the property’s market value and other bases for valuation such as fair value and reinstatement costs, but can also include less common elements such as worth (investment value) and forced sale value.
Properties are among the most valuable types of assets. Knowledge of their value is often crucial for investors making decisions.
Market participants need to know property values while preparing transactions involving real estate and for so-called share deals that involve the transfer of an entity that holds legal title to a property. Property valuations are usually required for bank loans, financial reporting, insurance, taxes and litigation, as well as many other elements of business.
Because tailor-made valuations are needed in such a wide variety of situations, and because the legal regulations concerning property valuation are complex and always evolving, it’s critical to entrust the job to the most-experienced and qualified experts who continually keep on top of ever-changing conditions.
The pace of change has been accelerating in both the local real estate market and the global economy. This is affecting investor and business behaviours and the ways in which we use properties. Meanwhile, societal demographic structures are evolving fast. All of this results in new PropTech and FinTech solutions supporting the market, while valuation methodologies have to be nimble and clear-sighted, constantly adjusting to best address the developing market environment.
For most entrepreneurs (especially those in non-real estate sectors), following this process of never-ending change is too complicated and time consuming. To get a clear picture of all the risks and opportunities that relate to a property, it’s important to have professional external support from top experts who can assess property value with optimal precision and due diligence.
The days of a valuer merely providing a valuation report are gone. Today’s valuers need to be objective advisors with comprehensive training and an ability to take a wider view. To be effective, these advisers also need support from a multidisciplinary team of professionals with expertise in property-related areas such as law, taxes and finance. KPMG is delighted to provide our clients with exactly such a team.