- raviParticipant@raviJoin Date: 2006Post Count: 8
Just need some guidance. I am looking at a commercial rental property which is not on the market but the owner is happy to negotiate a price close to valuation.
Spoke to Bank of Melbourne to see who they use for their valuation and got a quote from their recommended valuer, who has quoted almost $1700 to conduct the valuation!
Does that sounds normal for a property worth about $320k according to council rates? If I was applying for a loan who usually pays for the valuation?
Thanks,superAndrewParticipant@superandrewJoin Date: 2014Post Count: 188
Council rates are usually based on the land value of the property not the property as a whole including the dwelling.
Commercial property is valued using the Income approach or DCF so the valuation is a bit more complicated than the valuation of a residential property.
Do you what the net income over last 5 yeas was?
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auraviParticipant@raviJoin Date: 2006Post Count: 8
The council rate value that I was referring to was the improved capital value.
The net income over 5 years was property around 120k, however there is no security of leaseMick CParticipant@shapeJoin Date: 2010Post Count: 1,099
Commercial bank valuations will depend on a lot of factors ( you really need to neg and shop around too)
– Type of commercial ( Specialized/ one shop/ multiple shops/ office/ retail/ warehouse etc..)
– Cost of the transaction/purchase
– Construction or existing property
Generally bank commercial valuation can range from $800-$4000+
P.s Generally you pay…
Albert WaldronParticipant@albertuswJoin Date: 2014Post Count: 1
- This reply was modified 7 years, 10 months ago by Mick C.
Commercial valuations run out to around 30 pages taking into account various things like economic factors for the industry the current tenant is in, the type of security (specialised or a simple factory unit for example) and the location.
We have seen a valuation for a hotel/motel in a small country town which end up valued at just under $500,000 where the cheapest quote was $3,600
By contrast for a typical Metropolitan factory unit this would have been around $1,250
It does depend on the lender though some absorb some of the cost into the loan with a higher interest rate others simple ask you to pay the valuer directly.