5
SEPT 2018
The Importance of Valuations
Proper valuations becomes even more relevant when they are used to ascertain a fair calculation for property tax purposes.
Beyond this however with property being the most valuable asset for most folks keeping abreast of current values is neces-
sary for portfolio and resource management. In considering the potential for losses due to disaster ,outdated valuations
could well mean you are either under- or over- insured in eventualities. Other reasons for doing valuations, perhaps every 2-
5 years, could also include the benefit of better planning how to distribute your estate amongst loved ones, accurate presen-
tation of assets on balance sheets and can also be used where raising additional finance becomes necessary. In many coun-
tries a valuation is considered current if conducted within a 6 month period In requesting a valuation from a reputable firm,
which usually implies being RICS certified (Royal Institution of Chartered Surveyors) one is usually required to provide a
cadastral sheet for land or a Deed for completed property and or including building plans if planning to build. But equally
important is where the bankers are to become stakeholders, one needs to ensure the valuation is done by someone from their
approved list.
In T&T as an example, the cost to do a valuation are highly determined by
the ascertained value itself. The rates can vary from 0.25 to 0.3 of 1% of
the appraised value for which vat must then be added. As an example
properties valued up to $700,000 could attract a valuation fee of between
$2,250 to $2,400. Most reputable firms however also charge a minimum fee
of approximately $2,000 which is usually payable before the valuation exer-
cise is commenced. In T&T 10-12 days is considered reasonable time to re-
ceive the valuation report, once the exercise is completed.