AEDIUM Valuation Office is a independent property valuation company. Our headquarters is located in Wroclaw (Poland). The business is managed by qualified professional valuers. We specialise in the valuation of real estate of all types. We performed the valuation of land built large industrial facilities, office buildings, commercial and residential. We also specialize in valuations petrol stations.
REAL ESTATE VALUATION
Real estate appraisal [pol. wycena nieruchomosci] is a process of developing an opinion of value for real property. The service is performed by appraisers (otherwise known as property valuers) whose main responsibility is composition of an appraisal report [pol. operat szacunkowy]. Appraisal report is an official document and contains the opinion of property appraiser about the value of property. Such report consist of the information such as: detailed description of the property, description of legal fundamentals, market analysis, presentation of calculation process and the final outcome.
Appraisal report should contain:
- definition of the subject valuation,
- description of the valuation area,
- description of valuation purpose,
- legal fundamentals for the appraisal,
- the sources of the data about property,
- description of the property state,
- description of the real estate proximity,
- description of method of valuation,
- market analysis (prices, rents),
- presentation of calculations,
- the result of the appraisal.
In relation to finished appraisal report following actions shall be performed:
1. Confirm the appraisal report.
Appraisal report is valid one year. After this period report is valid only with confirmation by the author. Appraiser confirm the validity of appraisal report by putting the relevant clause (when the state of property and the prices on the market have remained essentially unchanged).
Revaluation [pol. aktualizacja wyceny] is also performed by the author of the report. Appraiser estimates a new value when the state of property or the prices on the market have changed.
3. Preparing another appraisal in the same case.
If the client does not agree with the value specified in the report may order the preparation of any other appraisal in the same case.
4. Valuation accuracy assessment.
Valuation accuracy assessment [ocena prawidłowości operatu szacunkowego] is performed by professional property valuers organizations (e.g. PTRM). The main purpose is to assess compliance with the law report and occupational norms.
Valuation of property is used in order to document the property value in written form. It is often used in cases of wills, divorce agreements, loan collateral, business analysis and accounting.
Market value of the property [pol. wartość rynkowa nieruchomości] is an estimated, most probable price possible to be obtained for the property in the day of valuation. Valuation requires analysis of market prices of similar properties, presumable income and costs. Without sufficient knowledge about the market, accurate valuation is impossible.
APPROACHES AND METHODS
In process of valuation different approaches and methods are used depending on the factors influencing the property value and the type of property.
1) The sales comparison approach [pol. podejście porównawcze] – used in case of market value of the property. It is based on the fact that value corresponds to the prices which were obtained for similar properties that have been traded in the market in recent years. Comparative approach is used, if we known prices and characteristics similar to the property being valued. There are the following methods:
- Sales adjustment grid (comparison in pairs method) [pol. metoda porównywania parami]. In practice, the most common method used by real estate appraisers is the sales adjustment grid. It uses a small number of recently sold real estate in the vicinity of the subject property to estimate the value of its attributes. Adjustments to the comparables may be determined by trend analysis, matched-pairs analysis, or simple surveys of the market.
- Average price adjustment method [pol. metoda korygowania ceny średniej] uses a moderate (usual around 11-30) number of recently sold properties. The average price of similar properties is adjusted depending on the characteristics of real estate valued.
- Statistical market analysis [pol. metoda analizy statystycznej rynku] involves using a set of transaction prices of real estate representative and the methods used for statistical analysis.
2) The income approach [pol. podejście dochodowe] used in cases when the property has a potential to bring a profit. In the income approach following methods are distinguished:
- The investment method [pol. metoda inwestycyjna] is applied to the properties which bring or have a possibility of bringing a profit from the rent, tenancy or other eligibilities regarding the property. The amount of income is estimated with use of rental market prices analysis.
- The profit method [pol. metoda zysku] is usually applied to commercial property valuations where the major value component is driven by the profitability of the businesses that occupy the buildings and not simply the land or buildings themselves. Situations where the profits method of valuation would be appropriate include hotels, guest houses, pubs and cinemas.
3) The mixed approach [pol. podejście mieszane] connects the sales comparison and the income approach. Both the properties similar to the valuated one and the profit provided by the property are considered. In mixed approach following methods are distinguished:
- The residual method [pol. metoda pozostałościowa] is applied to a property where building work is to be carried out. Property value is calculated as a difference in value after realisation of the works and the total cost of the works with consideration of investor’s profit gained on the market. Technique can only be applied to when all of the following conditions are fulfilled: 1. Existing conditions do not allow use of the sales comparison nor the income approach. 2. The type and range of work is knowable. 3. In the methods already adapted in the method data mapping the market condition are included.
- Ground indicators method [pol. metoda wskaźników szacunkowych gruntu] is applied to the properties used or meant for agricultural purposes. The value of the ground is calculated as the product of estimative indicator for one hectare of the ground and the price of one decyton of rye grain or 1 m3 of wood.
- Management expenses costs method [pol. metoda kosztów likwidacji] is applied when the components of the property are to be decommissioned. Property value is estimated as a cost of acquisition reduced by the cost of acquisition of components and in some cases by the value of materials left after the acquisition.
4) The cost approach [pol. podejście kosztowe]. The base of the cost approach is assumption that a potential user of real estate will not pay more for a property than it would cost to build an equivalent. This approach determines the replacement value of the property (not market value). Replacement value of the property is the sum of the market value of land and the cost of construction of buildings and structures (including the degree of wear). In cost approach following methods are distinguished:
- Replacemant costs method [pol. metoda kosztów odtworzenia] is based on the costs of production of an existing components copy with use of the same technology, materials, spatial resolutions and the quality as in case of valuated property. The costs are accepted as costs of components production for the property. The costs of project documentation and supervision are also included.
- Substitution costs method [pol. metoda kosztów zastąpienia] is based on the costs of object substitution with identical function but with use of modern technologies, materials, spatial resolutions and the equipment.
WHAT PROPERTY TYPES WE VALUE
We value all types of real estate: residential, retail commercial, industrial.
PURPOSE OF THE VALUATION OF REAL ESTATE
AEDIUM Valuation Office can help you with:
- pre-purchase valuations,
- pre-sale property valuations (prior to putting a property up for sale or rent),
- valuations for wills and probate purposes,
- family law/matrimonial valuations,
- valuation for insurance replacement purposes,
- for loan security purposes,
- for balance sheet and accounting purposes,
- for legal obligations,
- to monitor and measure the performance and real value of your investments,
- compensation (e.g. for expropriation),
- to assess your portfolio and its potential,
- the fee for the division of the plot,
- update the fee for perpetual usufruct,
- for an easement etc.
Realized real estate valuations:
- typical – residental properties (houses, flats, apartments and townhouses),
- retail properties: shopping centers (e.g. Domar – Wrocław, A4 Centrum Mody – Bielany Wrocławskie, Galeria Ostrowia – Ostrów Wielkopolski), supermarkets (e.g. Kaufland, Netto, Biedronka, EPI Market, Spar), cafes (e.g. Starbucks, Tutti Frutti), restaurants (e.g. KFC, Mc Donalds, Gospoda Wroclawska, Złoty Pies), pubs (e.g. Guinness – Wrocław, Za szybą, Szynkarnia).
- commercial properties – office buildings (e.g. CUPRUM Sp. z o.o., CompRot Sp. z o.o., HYGEA S.A., Fortuna Communication Sp. z o.o., Technoprocur Polska Sp. z o.o., ArtConHydral Sp. z o.o., INSERT Sp. z o.o., „City Point” Sp. z o.o., Przedsiębiorstwo Informatyczne YUMA, Projektmanagement Polska Sp. z o.o., NZOZ Mazowieckie Centrum Terapii Hiperbarycznej i Leczenia Ran, EnergiaPro Gigawat Sp. z o.o.),
- commercial properties – multi-family buildings (e.g. Projektmanagement Polska Sp. z o.o., I2 Development S.A.),
- orchards (Gądów – Jaszkotle, Biskupice, Kryniczno, Mokronos Dolny, Cesarzowice, Rogoźno),
- investments lands (e.g. DOM – SYSTEM Sp. z o.o., SAP PROJEKT Sp. z o.o., UPH „AMON” Jan Antosik, BUDIM Sp. z o.o., DEVPOL INVEST, PH OLA Sp. z o.o., I2 Development),
- industrial properties: shipyard (Szczecin Shipyard – an area the size of several dozen hectares of built-up industrial facilities – production halls, warehouses, ramps, storage yards with cranes and harbor cranes, office buildings, administrative buildings, social),
- industrial properties: brickyard (Krotoszyn, Brzostów, Witaszyce, Strzelin),
- industrial properties: factory (Fiat SA, Ilpea Sp. z o.o. – Chełstówek, Twardogóra, Spomarz SA – Żary, Smulders Group Poland sp. z o.o. – Bolesławiec, Termat – Środa Śląska, Industry Building sp. z o.o. – Łęknica, Nardi Appliances Poland Sp. z o.o. – Oława, „Leoni Autokabel Polska” Sp. z o.o. – Ostrzeszów, Grupa PEP – Biomasa Energetyczna – Ząbkowice Śląskie, Cuprum Business Center Sp. z o.o. – Wrocław ul. Paprotna, „M-Line” spółka z o. o. – Wieruszów, ZORLU HOLDİNG A.Ş. – Biskupice Podgórne, Grupa PEP – Biomasa Energetyczna – Zamość, FB Houtdistributeur BV – Środa Śląska, Termat – Środa Śląska, Marcegalia Poland – Praszka, Schavemaker Invest sp. z o.o. – Kąty Wrocławskie, Elica Polska sp. z o.o. – Jelcz-Laskowice).
- petrol stadion (several hundred!, mainly for BP Europa SE),
- valuation of the land for the purposes of compensation for expropriation (e.g. allocated for roads, petrol stations)
- palaces and castles (e.g. Łączany-Namysłów, Wąsów-Nowy Tomyśl, Krasków,
- landfill (municipality Ziębice – Ziębice, Bielawa – SigmaKalon Deco Polska sp. z o.o., Mo-BRUK J. Mokrzycki Spółka komandytowa – Wałbrzych,
- and many other real estate.
If you are interested in our offer, please contact: phone number +48 881 308 548 e-mail: firstname.lastname@example.org