For its part, the client is obliged to provide the appraiser with unimpeded access to the property, as well as to provide all requested documents.
The collected information will allow the appraiser to analyze the location of the property, its surroundings, and study the current situation of the real estate market in this segment. Accordingly, valuation approaches and methods will be selected to determine the reliable market value of the commercial property being appraised.
The results and the methods of obtaining them will be detailed in the valuation report, which is presented to the client upon completion of the work. Typically, the valuation report consists of 60-120 pages of printed text. It reflects all essential points that affect the market value of the property. All reasoning and conclusions will be supported by copies of documents and calculations based on the methods chosen by the appraiser.
Market valuation may be required in a variety of situations: for the purchase and sale of the property, for its contribution as a share to the charter capital, for determining its value as collateral for a loan, for insuring commercial real estate, for leasing it out, for division of property, withdrawal from the company's founders, for optimizing taxation issues, for business restructuring, for considering property disputes in court, etc.
There are also corresponding requirements for the valuation report, so the document must be drawn up and formatted as required by law. The date of the report, its serial number; the details of the legal entity – the client of the valuation; the basis for the valuation; the date of determination of the market value of the property; the limitations and scope of application of the result obtained during the valuation procedure, the name and details of the valuation company, its address, information about membership in a self-regulatory organization of appraisers must be indicated.
The valuation report must be accompanied by documents confirming the right of the expert and the company to conduct valuation activities.
_