Building Valuation

An accurate building valuation tells you how much your property is worth and/or how much it would cost to rebuild. An independent valuation gives you access to an objective, third-party assessment of the value of your property. This can enable you to secure an appropriate level of insurance too. 

Building valuation

What You Need to Know About Commercial Building Valuations

A commercial building valuation assesses the value of properties such as office blocks, retail units, warehouses and factories. There are different types of commercial building valuations available, including:

Market Valuation

Also known as a ‘comparable sales approach’, a market valuation compares your property to the value of similar properties in the area to determine how much it’s worth. If you’re thinking of selling a commercial property, a market valuation can be a good way to determine how much you’re likely to receive for the building or estate.

Income Approach

This type of valuation considers the amount of income a property generates to determine its value. This can be a useful form of valuation if you want to assess potential return on investment.

Cost Approach

A ‘cost approach’ valuation is based on how much it would cost to rebuild or replace the property if it were destroyed. Sometimes known as a ‘rebuilding cost’ or ‘rebuild value’. The valuation should reflect the size and layout of the building, as well as the materials used to build it and the labour costs associated with such a project.

What Costs to Consider with Your Rebuilding Valuation

Getting an accurate rebuilding valuation is essential if you want to make sure that you have appropriate insurance cover in place. There are numerous factors to consider when you’re assessing rebuilding costs, including:

  • Demolition and clearance of site
  • Environment and soil
  • Building design
  • Planning and permits
  • Professional fees
  • Construction materials
  • Project management and labour

While the Building Cost Information Service (BCIS) provides some standardised data that can be incorporated into your valuation, every property should be individually and expertly assessed to determine its rebuild valuation.

Remember: Site and property-specific factors, such as the Listed status of a building or the local soil type can have a significant impact on rebuild costs. Due to this, you must work with an experienced surveyor. This is so they can accurately assess each element of the rebuild process to determine the total projected cost.

The Importance of Re-Building Valuation and Assessments

A commercial rebuilding assessment and valuation is an important step in protecting your investment and your asset. There are numerous benefits associated with having a building valuation undertaken by a chartered surveyor, including:

Avoid Under-Insuring

Unless you have an accurate rebuilding valuation, you won’t know how much your property should be insured for. As a result, you could end up ‘under-insuring’ your property. This means that, if the property is destroyed, the amount your insurance company pays out won’t cover the full cost of rebuilding it. 

Reduce Premium Costs

When you don’t know the value of a building, you run the risk of ‘over-insuring’ also. This effectively means that you’re insuring the building for more than the cost of a potential rebuild, which means you’ll pay more in premiums than you need to. With an accurate rebuild valuation, however, you can minimise premium costs while still making sure you have the right level of cover. 

Optimal Asset Management

A commercial property is a valuable asset and it’s vital to know exactly what it’s worth. Whether you’re considering selling the property or you simply want to enhance your asset management, an accurate building valuation is key to maximising your ROI. 

Contact TCL Surveyors Now

To find out more about rebuild valuations or to arrange a building valuation now, contact our expert team on 020 3176 0029, email us at info@tcl-surveyors.co.uk or send us a message here.