Valuation review & update
You don’t have to take an existing report on trust. You can have it checked.
I look at the basis, the inputs and the result and tell you whether the value is comprehensible. Or I update it to a new valuation date.
Jens Krüger · Let’s talk: +49 172 868 5666
If a report or valuation already exists, the task can vary: should the existing valuation be traced and assessed professionally – or is a property value needed as at a later valuation date?
Both services are tailored individually to the property, the documents available and the specific question.
Understanding and assessing valuation inputs
A typical question is whether an existing valuation still holds for a new decision – for example a sale, financing, a statement of assets or a transfer. If a report or another valuation already exists, a plausibility review can help to trace the key valuation basis, the inputs and the valuation derived from them.
Depending on the task, this may cover plot and building data, floor areas, land value, rents and operating costs, remaining useful life, property yield or market adjustment factor, comparable data, special property-specific characteristics, model consistency and the final derivation of value.
A plausibility review is initially not a complete revaluation and not automatically a counter-valuation. The central question is whether the data, valuation inputs, methodology and result appear comprehensible and professionally plausible for the specific question.
For example a court-appointed valuation or a report from the other side: the process, review points and the route to a counter-valuation are explained in detail under valuation report review and counter-valuation.
When individual points need closer examination
If the plausibility review raises specific valuation inputs or methodological questions that should be examined and explained in more detail, the work can result in a written expert statement.
It can explain individual inputs or methodological questions transparently – for example which parameters of an existing valuation are now out of date and whether an update or a new valuation is more appropriate.
If it concerns the review of a third-party report in a dispute or court case – with a statement on methodological errors or a counter-valuation – please see valuation report review and counter-valuation.
The scope and aim of the statement are defined specifically before work begins. An expert statement is not automatically the same as a full counter-valuation or a new market value determination.
When a new valuation date is needed
If a property has already been valued as at an earlier date, a complete revaluation is not always necessary. It is often enough to update the existing valuation. If a suitable earlier valuation exists, it can be checked whether the property value can be rolled forward to a later valuation date.
The date-specific market data and valuation parameters relevant to the valuation method are updated. Depending on the property and method, these may include standard land values, comparable prices or comparison factors, market rents, property yields, market adjustment factors or other property market data.
A valuation update is therefore not simply a percentage uplift of an earlier property value. It must also be checked whether the property has changed in a way that affects its value since the earlier date.
My own or third-party reports can be the basis
The basis can be an earlier valuation of my own or a report by another expert. What matters is not who prepared the existing valuation, but whether the property description, floor areas, plot data, valuation model and other key foundations are comprehensible and suitable for the new task.
The longer the time since the original valuation date, and the more the property, its use or the legal or economic framework have changed in the meantime, the more likely it is that a new complete valuation is more appropriate.
With or without a new site inspection?
Depending on the task, a valuation update can be based on the existing valuation and supplementary current documents. A new site inspection is therefore not always necessary.
If there is uncertainty about the current condition, if structural changes or modernisation have been carried out, or if it cannot be adequately assessed whether today’s property matches the existing documentation, a new inspection may be necessary or professionally advisable.
Individual quotation after reviewing the task
The amount of work involved in a plausibility review, expert statement or valuation update cannot sensibly be fixed as a flat rate. Key factors are the type and size of the property, the specific question and the scope, quality and usability of the existing valuation and documents.
After a first look, the required amount of work can be estimated and an individual quotation prepared on that basis.
Depending on the task, a revaluation may make more sense
For a current complete valuation, the full market value report, the short-form valuation and the market value indication are available. Which depth is appropriate depends on the purpose and the robustness required.
Do you have an existing report or need a new valuation date?
Briefly describe the task and send the existing valuation. After a first look, you receive an individual quotation.