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Valuation of commercial real estate: why is it important to conduct it with the involvement of experts?

Commercial real estate appraisal is a mandatory step when working with any real estate object. The valuation operation is important in all cases of lending, investment search, etc. Although today there are various opportunities to obtain a property appraisal, you should still turn to specialists.

It is the involvement of external forces that can guarantee a quality result of cooperation between the two parties - the customer and the consulting company. To do this, it is advisable to use the services of an expert who has been working in the field of real estate for a long time and has some experience in this field and appropriate certification. After all, without knowledge of the real estate market, the factors influencing it and ways to determine the real value of the object, it is impossible to make an assessment that accurately and reliably represented the collected data. In addition, it should be borne in mind that real estate appraisal is the key to obtaining a report on the work done, which has legal force and can be used in practice during real estate transactions.

Valuation of commercial real estate can be carried out using the following approaches (methods):
1. Comparative approach. This is the most commonly used method of valuation, which is based on the comparison of similar characteristics of real estate. This takes into account economic, material, technical and other features that affect the value of the object.
2. Cost approach. This approach calculates the cost of building the same property being analyzed or replacing it with complete liquidation. In other words, the value of a property is determined by the cost of creating a similar property.
3. Profitable approach. Here, the tenant's expectations regarding the future profitability of the property are important. That is, this approach consists of calculating the future cash flows that will potentially come from real estate.

As mentioned above, real estate appraisal is not just a matter of the buying and selling process. In particular, there are the following situations-scenarios for which it is necessary to carry out an assessment:
• directly the process of buying and selling real estate;
• when obtaining a loan (this is a mandatory stage of the loan in any bank, as the property itself becomes collateral);
• to attract foreign investment;
• in cases of real estate lease (objective assessment will allow to determine the minimum break-even point of a particular object);
• for real estate insurance (in order to further receive insurance benefits related to real estate), etc.

Finding a certified appraiser is probably the most important step for a developer and property owner of any type. A high level of performance is a guarantee of the reliability of the assessment, which allows you not to worry about the result. First of all, in order to select an expert for real estate appraisal, it is necessary to find out whether he has a license to conduct such work. Otherwise, it is possible to obtain the results of the assessment, which, unfortunately, will not have a legal basis for further use.

Another support in the commercial real estate appraisal market can be the involvement of international experts or specialists who are under the protection (guidance) of foreign organizations. Typically, such cooperation makes it possible to obtain an evaluation report that meets international quality standards and is relevant to the global market.

Specialists of the "UKRAINIAN CONSULT GROUP" are engaged in the assessment of real estate not only in accordance with current legislation of Ukraine, but also involve international experts in order to use foreign practices. Assessing a property with the most objective information for the client is the main fruit of our work. To do this, use the methods and approaches that are most interpreted to the needs of a particular customer.