Land & Property Evaluation

Appraisal of real estate is an expressed opinion of what a property (land & building) is worth and likely to fetch - at a particular date - if offered on the open market for sale or rent. Therefore, appraisal accuracy matters to us all; those who occupy, own, develop, invest or trade in the real estate/ property market. In addition to selling, purchasing and renting; property appraisals play a vital role in institutional lending (mortgages and loans), business accounting, financial investments, compulsory acquisitions, court settlements and other areas. The success of these transactions and the mutual satisfaction of the parties rely on competent and impartial appraisals.

MORTGAGE LOAN VALUATIONS

Valuations for mortgage purposes require two separate and distinct expertise; firstly, that of the Valuation Appraiser and secondly, that of the Quantity Surveyor. Valuation/apprasial of property: Valuation of an existing property is nearly always necessary when it is being used as security for the mortgage loan. That property may be a vacant lot of land, or one with an unfinished building, one requiring repairs, renovation and or extension. Where the application for the loan is for new construction or for improvement to an existing structure; the mortgagee/ lender will also require a projected valuation of the proposed works, as if the construction or improvements were already completed. This particular exercise requires Quantity Surveying expertise.

QUANTITY SURVEYING & ESTIMATING

The decision to construct a new building, renovate or refurbish an existing one is usually always a major investment commitment and can be fraught with challenges. Accurate cost estimating is essential as it performs a key function at every evaluation stage. Therefore, Quantity Surveying expertise is required for the estimation of: 1) the initial construction cost, 2) the cost of variations/ changes, 3) the ascertainment of progress for stage payments, 4) and agreeing the final account. However, accurate and by extension reliable cost estimating does not result from the single-line exercise of simply multiplying the area of a building by a unit rate per square foot. This simplistic approach gives - at best - a rough indication of the likely one-off figure, and/or final price of the building/structure. In fact, the eventual rate per square foot is really an end product and NOT a figure to begin with.

INSURANCE REINSTATEMENT COST ASSESSMENT

This exercise is in fact cost based and therefore the use of the term “valuation” is potentially misleading as neither the location nor the value of the land is a feature of the Insurance Reinstatement Cost Figure. Valuation speaks to an information opinion of worth; NOT what it will cost to build. The Quantity Surveyor (who is the construction professional trained in construction estimating - measuring and pricing) will estimate the total rebuilding cost; which comprises the construction cost, the cost of demolition, debris removal, compliance with planning and building regulations, associated professional fees, inflation and VAT where appropriate.

BUILDING CODE COMPLIANCE INSPECTIONS

With the increasing frequency and magnitude of natural disasters, it is essential for the practitioners of real estate and construction to be up- to- date with the requirements of Building Code and Standards. The principal of MIL has a sound knowledge of local, regional and international building standards; which were acquired as mentioned here below:

• Coordinator for the first phase of the CARICOM Regional Building Standards Project (Aug. 2008 – Dec 2011).
• Technical officer at the (BNSI) Barbados National Standards Institution (1996 - 1999) dealing with matters pertaining to Engineering and Building Components especially relevant to the National Building Code (BNBC 1983 Edition).
• And, more recently (June 2014) completed a Certificated Course “Regional Code of Practice for the Construction of Houses: offered by the SJPP in association with CDEMA.
NB: Order changed