A property valuation can be needed for a variety of reasons by different people and can play an important role in getting loan security, financial reporting, or internal use. The importance of these valuations makes it no surprise that individuals and companies alike would want to know how much it will cost before proceeding with a particular company. With that being said, that no valuation is the same, with many variables involved in the process. As such, it is rare for a valuer to have a set or standard price for a property valuation. So whilst answering the question ‘How much does it cost for a property valuation in Dubai?’, it would be much more efficient to understand the different factors that affect the price. We have broken down some of the key factors that impact the cost of a valuation, and what can make it more or less expensive.
Purpose of the valuation
There are many different reasons why a person may need a valuation and as such the prices for valuation. One common reason is for loan security. Lenders or banks will often necessitate an independent valuation to take place so they can determine how much they are willing to lend. Companies or individuals may need independent advice to determine the value of the assets they hold. Otherwise, corporations and businesses will need to conduct quarterly or annual valuations for financial reporting and accounting. Whilst these are all valuations, their purposes differ, and as such, so does the liability, therefore the prices of the valuation will most likely vary.
Time and Effort
Some valuations take more time than others, depending on the complexity and the scale of the project. Take for example a drive by inspection for a single office, which will be priced differently from a total inspection of a full tower or commercial complex. The more effort, and the more complex the valuation, the more time it will take, and subsequently, the more expensive the valuation will be. As a general rule, smaller residential properties will be considerably less expensive than larger commercial properties.
There are several different inspection types that can be performed, depending on the needs and requirements of the client, as well as the specifications of the property in question.
One inspection type is a desktop investigation, this involves an investigation into the property and its surroundings which are all done from the valuer’s computer at their office. All of the relevant documents should be provided to complete the valuation accurately. A client may opt for this if the client has had a full valuation report completed previously, and all that is needed is a re-evaluation of the property.
Next, there is a drive-by inspection. If access into the property is not permitted a client may opt for this type of inspection. This involves a full external inspection, wherein only the outside of the property is looked at. Following this, a partial inspection may be completed. This type of inspection would arise if the valuer has restricted access to the property and they are only allowed to access certain parts of the unit. Finally comes a full visual inspection, which will involve an internal, external visual inspection. This is the most comprehensive inspection type that will give the most detailed property valuation report.
Depending on the type of inspection, the price may vary, with full property inspections tending to be more expensive than drive-by or desktop valuations. With that being said, a full inspection would tend to be the best type to do whenever possible.
There are various methods that are employed when doing a property valuation, and deciding which are used is generally dependent on asset type. The most commonly used methods are comparable, investment, and the profit method. The investment method is typically used for more complex investment type properties, whereas the comparable method is the most commonly used when there is a good availability of transactional evidence.
As one can see, there are a lot of different factors to take into account when factoring in the price of a property valuation, with the purpose, amount of time, the inspection type, and the methodology all playing a part in the final cost. To get an accurate quotation of how much a valuation of your property will cost, the best course of action would be to book a meeting with a chartered surveyor and/or a qualified valuation expert. They would be able to sit down with you and discuss your special requirements, as well as find out more information about the type of property that needs to be valued. After a thorough preliminary analysis has taken place, the valuer will be able to give you a quote.
If you require a valuation for your property, our valuation team is fully qualified and RICS certified, so will be able to deliver a high quality and comprehensive report that is designed with your specific needs and requirements in mind. For more information, book a consultation with one of our team.