(Please select a report in the left column
for a detailed description) |
Property portfolio
A comprehensive description of the property is intended to inform the owner or potential buyer about its basic properties: location, access, size, architecture, curtilage, serviceability, sustainability, structures and installed materials, electrical and utility installations and devices, management methods, etc.
Examples of the report: 01 | 02 | 03 | 04 | 05
Red flag report
informative report that is usually made immediately after the first visit of the property. It lists major weaknesses noticed during the visit, which should be eliminated before the final report is made. These are usually the main obstacles, which could prevent the sale of the property.
Examples of the report: 01 | 02
Due diligence report
This is the main part of the due diligence audit. It includes inspection of capacities, serviceability, condition, architectural and technical properties, electrical and utility installations, documentation and permits, management methods and basic review of construction and fire safety.
The focus is on deficiencies and errors which might impede or prevent sale, lower property value, increase regular maintenance costs or breach legislation. The review also presents future expected investment and maintenance costs.
Examples of the report: 01 | 02 | 03 | 04
Review of the property’s floor areas
A detailed audit of floor areas categorised into usable, communication and service areas, and a separate review of any leased areas. The review is made on the basis of available documentation, while it is also possible to order measurements of existing areas at location.
Examples of the report: 01 | 02
Property documentation report
A comprehensive review and classification of available documentation about the property with emphasis on legally required documentation (permits, inspection and maintenance reports, PID and POV) and compulsory documents, which, if failed to present, might suspend the sale of the real estate or cause management difficulties.
Examples of the report: 01 | 02
Report on estimated value of the property
An estimate which provides information about the property’s market price. The estimate is made by comparing the actual selling price of similar properties recently sold on the market. The estimate is made by an authorised appraiser accredited by the Institute of Internal Auditors.
Sworn property appraisal - Sales comparison approach
Sales comparison approach (SCA) is based on the principle of supply and demand, and summarises comparable data on sold and advertised real estate, making adjustments for the appraised real-estate in accordance with available information. SCA presents value by comparing the appraised subject with the same or similar subject, for which information is available. It recognises that asset value is determined by the market, and considers the sales of similar or substitute assets, related market information and the processes that include comparison.
Sales comparison approach is useful when the client seeks to find out the market value of the real estate or how much the real estate is worth on an exact day according to market analyses.
Sworn property appraisal - Income approach
Income approach shows value by discounting future cash flows to give their present value. Income capitalisation uses procedures that base current value on future benefits from yield. This method is only used if significant comparable data are available. It is particularly important for all types of assets bought and sold on the basis of their yield and characteristics and when market-supported information is included in the analysis. This approach presents the value of a property on an exact day when used for profit (leasing, superficies, etc.).
Sworn property appraisal - Cost approach
Cost approach relies on the construction cost and can provide a guideline for distinguishing between such value and market value. It is based on the principle of substitution and the premise that an informed client will not pay more for a property than it would cost to build an equivalent with the same use. This method also encompasses depreciated cost method.
This method is useful if a client wishes to know how much the total costs of building a real-estate would be, spanning from public utilities fee to actual construction, or when the client is interested in the value of an existing building, considering physical, economic and functional depreciation. It is also very useful when the client require a separate appraisal of the land and the building.
Legal review of the property
The review summarises the legal aspects of a real estate based on contracts and entry into land register.
It is practical particularly in case of unclear land registry entries (notices and restrictions, easement not entered for a part of the building, actual use not entered etc). It is also useful when owners are entered as owning the entire property, while it is actually a condominium and strata titles should be arranged.
Economic analysis
In MSOV 2011, economic analysis is defined as the most profitable use of assets that is physically possible, justified, legal and financially viable and which present the highest value of appraised property.
It is useful when the client does not know the possible developments or uses of a site, as it present the best options. The analysis is performed by a sworn property appraiser.
Renovation cost estimate
Renovation cost estimate is prepared as an itemised list with specified prices based on a renovation project. We do not provide cost estimates that are not based on a concrete project, as we find them unreliable..
Reviewing project documentation for planned new development
The review includes checking the functional suitability and use of a planned development regardless of the extend of project documentation (IDP, PGD, PZI). With the help of the review, the investor can decide to proceed with the construction of a development, sell the site or amend the project documentation.
Auditing project documentation for planned new development
Auditing project documentation means checking if the building is built in accordance with legislation. This type of auditing is defined in the Construction Act, but is no longer compulsory for acquiring a building permit.
Floor area measurements
Measurements of existing floor areas on-site. It is sensible when different documents (project documentation, lease contracts, land registry) list different information on floor areas, and the building is valued according to the price of a square meter.
Measurements and testing
Measurements of thermal and sound insulation, emissions of harmful substances and the like, which are performed by specialised companies. The owner of the building can order measurements separately or as part of due diligence audits.
Review and analysis of fire safety
A detailed review focusing on building safety in case of fire, which is conducted by authorised fire safety engineer. The study includes a review of the fire safety study, which was the basis for issuing the building and operating permits. Improving fire safety is also recommended for lowering insurance premiums.
Inspection and analysis of construction suitability
A detailed analysis of whether a construction is suitable (basic analysis is included in the due diligence report) performed via a comprehensive review and measurements of the condition of the construction.
Site portfolio
A comprehensive description of a vacant site, which informs the client about its basic physical attributes (location, access, size, terrain), potential for development (possible use, attractiveness of the location) and legal considerations (relevant legislation on spatial development and constructions).
Report on the site’s potential for development
A report on the possibility to expand the existing structures or build new ones considering the relevant legislation on spatial development and constructions, site attributes and any other possible considerations. It is recommended that this is prepared together with the analysis of the most efficient use and property valuation.
Site valuation report
A report which is an appraisal based on sales comparison, cost approach and income valuation methods. It is performed by a sworn appraiser.
Site planning for a potential development
Site planning analysis, which includes evaluating the building setting, the location potential and restrictions, connection to utility and transport infrastructure and potential capacities of a new development. The evaluation is prepared in the form a site plan including a report.
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