Commercial Property Valuation

Hi PC forum members,

I'm about to enter DD on a commercial property (warehouse) in Gold Coast area.

I am considering a professional valuation to confirm the asking price and my own valuation calculations. I believe banks don't pay for them so buyer has to pay out of pocket.

Would be grateful if you could share your experiences, pros/cons of getting one and recommend a provider?

 

Have a chat with your broker, they should be able to provide some guidance.

Not all panel valuers do commercial, retail valuers are specialists (must have 5+ years retail valuation experience). Even if the valuer is on a panel, it may not be accepted by the bank when it comes to loan approval.

 

Thanks @Scott No Mates - that's what I was told by my broker - even he had to pay $3k(!) for a valuation for a commercial prop he owns. Apparently Bank West may fund one...

I guess I'd like know if anyone on the forum has ever paid for one and did they find it useful for DD either for negotiating a better price, confirming the valuation or getting a better bank val?

 

Agree it's all relative - For my broker's commercial property, I think it was circa $2M property.

 

We recenty bought a commercial rural property and used a valuation from HTW as the basis of our offer. We had advised the owners prior to making our offer that it was going to be based on valuation as that also determined our borrowing capacity.
Seemed fair and suited both parties.
Cost of valuation report was around $2500. Saving from original advertised price was $300k on $2M.

But when it came time for finance to be sorted, the bank ordered their own valuation, even though HTW are on their panel. Dont know why, but we didnt have to pay for it (not directly anyway).

 

Thanks very much for sharing - a few people have told me about HTW. Would you mind sharing how you got the $2,500 price?

 

Made contact via email and requested a quote. Got a call back to discuss the properrty and our requirements and the quote arrived the next day.
It was a non-standard property due to topography, land use and location so not alot of comparable sales.

 

yep - that sounds about right.

I would have throught that a professional valuers report would be independent and unbiased but I suppose there could be suspicion or a perception issue.

But at the end of the day, the banks valuation was the same as ours - as i believe that their valuer used our contract price as their main evidence.

 

What if you order the val for "first mortgage purpose" only and ask to have to assigned to specific
lender? Will bank/lender accept it on that basis?