It is always prudent to know how much your property is worth. Communicating this value to your tenants makes them appreciate what they are getting especially if the commercial value is higher than the market value.
Understanding the value of the property will also guide on how you will be pricing and the rent escalation percentages or figures to apply.
To get the value of commercial property in Nairobi, you have two options. You can either get a property appraisal from a certified real estate professional. The property appraisal will show the estimated market value based on the current trends in Nairobi or the region. Two, You can engage professional valuers to calculate the value of your property in Kenya.
What or who is a professional valuer in Kenya?
Basically, a property valuer in Kenya is a person who is trained and qualified and who does property inspection and generates valuation reports indicating the property market value.
For the valuer to be trusted and qualified to review a certain property, they must not have any financial interest in the property. In most cases, these valuers are recommended by financial institutions like Banks or real estate agencies.
What is a property valuation in Nairobi?
Property valuation can be termed as the end report that is generated by the professional valuer after the valuation process. This is a professional report that can be used in legal to acquire a mortgage, tax liabilities and the value of an estate.
A property appraisal is different from a property valuation report in that the property appraisal is used to establish the market value of the property but it is not legally binding as the property valuation report.
What property elements does a professional valuer assess during property valuation?
Some of the Key elements that have been highlighted during property valuation include:
- The size of the land
- The property location
- The proximity of the property to certain amenities
- The key architectural design style
- The current condition of the commercial property
- Aspect (this is defined as the direction in which the commercial property is facing in respect to certain elements.
- The topography (the shape of the land in which the property is sitting on)
- the land block layout
- The size of the commercial property
- The layout of the commercial property
- The property features like bedrooms, bathrooms, kitchenette etc
- Possibility of development / renovations
The valuer then compiles the data into a report for review. This report will then be compared to similar commercial properties with similar attributes that have been sold within the previous 180 days. The valuer will then generate a comparative market analysis report and the average prices gathered from the review will form the baseline of how much the commercial property should be worth.
How can you have your commercial property valued in Nairobi?
If you want to determine the value of your commercial property in Kenya and especially in Nairobi, the best option is to get advise from your financier or mortgage providers. You can also check property valuing companies or key real estate agencies in the region.
The valuation fee usually varies from valuer to value and it is also dependent on the type of the property, size and probably the format of the report requested.
If you are planning to understand the value of your property and get the best return on investment, contact us today and we will be glad to help.
Your real estate commercial partners.