It is a quantitative process of determining the fair value of an asset or a firm. We undertake the following:
Understand the Purpose and Function of Your Valuation
This is the most crucial step of the process. First, we determine the purpose of your valuation. Most often it is for rental,insurance, mortgage bond, mergers and acquisitions, deceased estates, ZIMRA. Next, we must understand the function of your valuation. Are you looking to buy or sell property? Are you looking
to re-mortgage? Do you need to file an insurance claim for damage? Are you looking to appeal your property taxes? Byunderstanding the purpose and function
of the valuation, we can ensure that the results are not only interpreted correctly but will also give a full and complete picture to whoever is receiving the valuation report when complete, be it a buyer, seller, lender, insurance company or even a government entity. Another important factor is what the property is currently being used for. Is it an office building? Or is it a cement factory? A portfolio of multiple properties? This allows us to figure out the two most important pieces of any valuation – determining the types of data for us to ascertain the best process of valuation. This conversation and information allow our team to fully define the scope of the project so everyone fully understands the terms and expectations.
Comprehensive Onsite Inspection of Your Property
Our expert appraiser begins the process with an in-depth conversation with the property owner. This is a crucial step forus to find information we would not be able to uncover because who else knows the property better than the owner or the operator?
We then conduct a comprehensive inspection of the site, which may include, multiple visits to your property, looking at the entire external and internal footprint of the structure, and considerations such as furnishings, trade fixtures or fixed equipment. During the inspection process, we are looking at multiple factors. We will gather general information, such as the age, size and use of the property and equipment, any recent improvements to the site or alternative improvements needed. We document the overall structure and construction, the layout versus the functionality, as well as the condition of the mechanical systems like electrical, heating and plumbing. All these pieces of a property can, and do, affect its value.
Collect Data on Your Property
Along with the information you provide us for your property and what we gather via the site visit, we conduct a deep discovery process to compile additional data. We pull data from premium worldwide databases that are updated daily. This up-to-date data is essential to ensure that the information and analysis we provide in our findings are always current. General real estate trends, including the local economy and population growth or decline, are also essential information we collect. Site-specific data and comparable properties, if applicable, are also needed benchmarks. We dig into research to make sure we understand the nuances of every area we work in. This information along with your stated purpose allows us to determine the best approach to value, using one or more of these three valuation options:
• Cost – (the principle of substitution) ensures that no buyer or renter will pay more for a property than it would cost to build, buy or rent a similar property.
• Sales Comparison – compares the property being appraised with similar properties that have been sold.
• Income Capitalisation – looks at the value of an investment property against the value of the future income that the property could produce.
Our team will estimate value using all three methods, then reconcile the various estimates to determine the best value to use in the final report based on all the data collected.
Compose and Submit Your Real Estate Valuation Report
While many in our field write narrative appraisal reports by filling in the blanks in a computer program. We always custom write each page of our client reports. This is done with the legal mind set imparted on every team member by our founder
& leader Barbara Chiganze, who has over 20 years of experience in the field. Your report will do more than give you a single number for your valuation. It will allow you and any other intended user interested
in the property to fully understand the impact of every aspect, from its history, regional analysis of the area, zoning of the land, demographic profile of the area, to countless other factors. We adhere to the strictest government and industry guidelines, all our reports are prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP). Once we complete our report, we will set up a meeting to review it with you and welcome any questions or concerns you may have. We are here for you throughout the valuation process from the time we are retained until after you receive your final report from us.