Property Valuation Requirements | Realtors Limited

Property Valuation Requirements

Property Valuation Requirements

When purchasing a real estate in Barbados a property valuation can provide a clear picture of the true value of the property both for insurance purposes and to ensure the sales price is close to true market value. Property valuations can be quite daunting but are far simpler than they sound, our team will guide you through the entire process to ensure a smooth and efficient execution of the valuation.

Before beginning the valuation, it is best to determine from the client the purpose of the valuation. Valuations are used for multiple purposes such as; insurance replacement values, obtaining a mortgage from a financial institution or to ascertain a fair market value when looking to sell or purchase.

Once our qualified property valuer is informed of the client’s needs a detailed checklist of documents will be requested before performing a site visit.

  • Most recent land tax bill.
  • Surveyors plot plan for the land.
  • House architectural plans.
  • Copy of previous valuations (if available).

Once all the documents are received a site visit of the property will be organized to facilitate photographs and detailed notes on the property’s amenities, finishes and the surrounding real estate. The property assessment will then be completed with analysis done of ‘Fair Market Value’, ‘Replacement Cost’ and in some instances ‘Income Capitalization’. The valuation will also outline other comparable properties across the island on the market as well as properties which have sold to determine a true and clear market value based on current industry standards.

In the case of commercial properties, reports of rental income will need to be generated by the owner to allow for an accurate income capitalization to be completed for the property to determine the potential Rate of Return or Return on Investment (ROI) as it is also known. Financial Statements comprising an Income Statement and Balance Sheet (if available) are useful to offer a clear an accurate financial snapshot.

Upon completion the Valuation Report is submitted to the client clearly stating our remit, its purpose, who requested it, and to whom it will be presented. Clear information outlining the area and location of the property, the structure of the building and the materials and finishes used in construction are available. The report will also outline the external landscaping, curb appeal, security and fencing, and any other features that will have an impact on the value of the property.

The report further explains and summarizes the three main methods used by valuers and accepted by all major international association’s agencies and organizations. We provide proof of our comparable information and outline the cost values used for our comparable cost analysis, thus establishing our proposed value of the property in question. All of Realtors Limited’s valuations are done by a BEAVA (Barbados Estate and Valuers Associate) accredited valuer.

For any questions or to book a property valuation, please Email Us today.

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