9 May 2023
Looking to know the correct value of your property? SMC Brownill Vickers, a property agency based in Sheffield, can help. Our expert team of property valuers, who are RICS registered, value commercial and residential properties every day.
With our 150 years of experience, we have built up an understanding of how the drivers of value and how we value property differently using different techniques depending on the asset class of the property. Find out what aspects contribute towards the valuation of a property in this piece.
So, how do property valuers value property? Property valuers assess various aspects of the property from its size, location, condition, age, use and occupational status of the property in question when undertaking valuations. We also consider the internal layout and number of rooms, commercial/development potential, and analyse recent comparables in that area whilst having regard to the wider asset class and economic conditions.
Let’s review these considerations individually to see how each can contribute to the sale of commercial and residential properties.
Below are a few key features that any valuer will consider when evaluating a property. These values will always be relevant to any property, either commercial or residential.
When valuing residential properties, size is always a factor for property value. The number of beds or area by square footage is often the first thing mentioned when talking about a property. For residential properties, size matters in every area, from the size of the living room to the size of the master bedroom.
Commercial properties also need to have available space to operate, but can sometimes feel empty if they have too much unused space. Space is also a cost, so to have unoccupied or unused space could lead to wasted costs.
It should be a key consideration for a business to find commercial property that fits their needs and potential growth, however too small or too large could be costly.
Whether we are valuing a residential or commercial property condition is a key consideration to the value of a property as a property in poor condition could lead to further costs down the line.
When we value a property, we often suggest a RICS Accredited Building Survey is undertaken, where we look in detail into the condition of the property. This information is given to the prospective buyer to inform them of the condition of the building.
What you want to avoid is purchasing a property that is in poor condition, which can often mean spending thousands of pounds correcting further down the line. We usually consider:
Location is a key consideration for any property you might be interested in. We think the following factors are worth considering with regard to location when purchasing a residential property. They are:
For commercial properties the attributes of a particular area can be preferable depending on the asset class of the property. For offices you might want to consider transport links, nearby car parks, access to sandwich shops etc. Warehouse accommodation you will want to consider motorway links, car parks, distance to workforce and similar occupiers. Retail units are likely to have similar location considerations.
When looking to value a residential property, local and recent comparables are a key driver. If a similar property has sold in that area recently, this is a good indicator towards other properties, with regard to price. Of course, the number of rooms, condition and age all play a part. However, the current market conditions also play a part in valuing property.
For commercial property, the property’s potential in that area can play a large part towards its value. A property that is surrounded by property that has been converted to an alternative use or developed into larger buildings may increase its current value. Likewise, if there are works to the highway, other buildings or large scale redevelopment may also increase the value in that area.
When having your property valued, you might want to consider the person who is evaluating your property.
The Royal Institute of Chartered Surveyors (RICS) are an internationally recognised institution that focuses on standardising the actions of surveyors and valuation teams. To do this, they develop and enforce standards that protect individuals and businesses alike. You can become a member of RICS by having:
It should be stated that, in order to get an accurate estimate for your property, you should be looking for a Chartered Member of RICS (MRICS) to evaluate your property.
These qualified evaluators can issue valuations for a variety of purposes, including:
If you are looking for a valuation with a RICS accredited valuator, get in touch with SMC Brownill Vickers today. We have years of experience in the South Yorkshire and Derbyshire area and both the commercial and residential property sectors.
