VALUATION OF HERITAGE PROPERTIES
Besides being potential tourist sites, heritage properties when rented out, are perfect residentials. However, before placing it on the shelves for rent or sell, it is important to make sure you do not undervalue it to its buyer or tenant. Undervaluing heritage property is easy if done as a whole structure. It is necessary to look into the different components that make up the structure/properties during its valuation process. A lot of issues will require an in-depth investigation to conclude on the monetary value of a heritage property and these vary from property to property.
KEY FACTORS TO CONSIDER WHEN VALUING HERITAGE PROPERTIES
It is wise to have several opinions from various people with regards to property evaluation but also having an expert, who understands the significance, damages, benefits and laws that govern the heritage property is key during this process. This is because an expert will pay attention to every detail of the property. Once a client understands the value of their property, then it’s the right time for historic insurance and other important protections to come into play.
1.Location of the heritage property
Valuation is also value therefore narrowing down one’s valuation process to only the property is likely to lead to a major loss. Sometimes, valuation of a heritage property is fully reliant on its site location, not property. This is common if the property is situated in a location with a beautiful scenery or one with greater benefits as compared to the property.
Likewise, a heritage property located far off from the reach of people or in a risky location greatly reduces the value of a property. In this case, considerations when valuing the property would be mainly focused on the property buyer rather than the seller.
2. Circumstance or situation at hand.
It matters a lot the reason for which the valuation is done. This can either be an advantage or disadvantage depending on how it directly influences the valuation process. An example can be valuing a heritage property for compensation due to an ongoing project that greatly depends on it, this automatically boosts the value of the heritage property simply because without it, a project can not continue.
Also, the older the heritage property, the more its structural properties deteriorate. If sold off in a state beyond repair, where the costs of its repair would be higher than the actual cost of the property, the property would be valued less to give room for the person willing to take it up.
3. Significance of the heritage property to the community.
Historic property valuation is also determined by its significance and economic input to a community. Does the purpose of the building contribute to knowledge, education, culture or faith of the community? These are questions that would require to be answered to guide your client when in discussions with the authorities.
The higher the significance of the property to the community or state, the higher the value attached to it. If the valuation is for sale, the problem that is however likely to arise from this is an opposition from the community or concerned authorities due to the strong attachment to the property in discussion.
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