Streamlining the valuation process

Understanding & streamlining the valuation process

Valuers are instructed on assignments for many purposes; for acquisition and disposal due diligence, financing, financial reporting or insurance purposes, to name a few.

Our clients often ask us what we need from them or what they can do to help facilitate the process. When you require a valuation, there are some practical things you can do at each stage to help streamline the valuation process.

Quote Stage

At the quote stage, I advise my clients to engage with the valuer and to be 100% transparent about the scope, required basis (or bases) of value, particular assumptions required to value and to whom reliance of the report will be extended. Be detailed about whether the valuation is for financial reporting, mortgage reliance, or proposed disposal or purchase. Be specific about whether the valuation should reflect an existing tenant and/or a proposed tenant and whether it is to be a valued subject to “as is” principles or to a higher and better use. This kind of information should be clear and agreed upon prior to commencement. I recommend that you communicate this to the valuer at the outset.

I also suggest finding out what kind of information you will be required to provide once the quote is accepted. Whilst valuers have access to a plethora of alternate information sources, we rely heavily on the information you provide because often, key asset specific information can only be obtained from the landlord and/or instructing party.

Compiling this information can be time consuming so it’s helpful to know, in advance, what you will be asked for during the instruction stage.

Instruction Stage

Information should now be on hand at the instruction stage. That is, accurate and transparent information including, but not limited to rents and outgoings, leases and incentives deeds, environmental assessments, building plans / surveys and copies of statutory charge notices such as land tax, council rates and water rates.

Further information requests can slow the process, so if at this point there is still ambiguity, I urge clients to contact the valuer immediately.

A site inspection is the valuers opportunity to assess the entire property. At instruction stage, two things you can do to assist this process are: notify tenants of the visit; and ensure safe and easy access to all areas of the property.

 

Review and Reporting Stage

During this stage, know that there is usually a rigorous internal peer-review process occurring. This process is integral to providing a robust and verifiable valuation. Should you feel feedback and/or further discussion may be needed, we advise that you request a draft of the report, so that amendments, if required, are finalised and signed off within the stipulated currency period. Finally, carefully review the report to ensure it reflects your requirements.

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