Do you need an appraisal of your commercial property?
When appraising your commercial property, you want to be sure of the appraiser's expertise. The first thing to determine is what kind of appraisal you need. In fact, there are several ways to have your commercial property appraised.
This may be for insurance purposes (called rebuilding value)
The value of a building to be insured is the reconstruction value. This is often confused with an economic value or a WOZ value. When taking out insurance, the purchase value, the historical cost/building cost or the current value are used, for example.
As a result, the risk of underinsurance is very high in all of these cases. A fixed appraisal of your commercial property eliminates that. We look at what the current construction costs are for the building. Often the insured amounts are indexed annually. This can create the risk that after a number of years the rebuilding value will be very different from the actual construction costs. Standard indexing uses a percentage that can often differ from the actual increase in the value of your commercial property. This can cause over- or underinsurance.
Underinsurance
The term underinsurance actually covers it. Your insurance pays out too little because the insured value is lower than the current reinstatement value of your business premises. This could have been prevented with a fixed valuation based on article 7:960 BW.
Overinsurance
An often slightly less-exposed side of insurance is overinsurance.
The danger of this is that you pay too much premium while the insurance does not compensate more than the actual damage. You can prevent this too with a fixed valuation based on Article 7:960 of the Civil Code.
Article 7:960 BW
The insured shall not receive any payment under the insurance which would put him in a clearly more advantageous position. The preceding sentence shall not apply in the event of a prior assessment of the value of an item of property pursuant to a decision commissioned from an expert or pursuant to a decision of the parties in accordance with the advice of an expert.
Whether this can be for economic purposes
You can also have your commercial property appraised for economic purposes, for example, when buying or selling a commercial property, to support an investment decision, for annual accounts or for (re)financing.
However, valuation is a complex matter that requires expertise and care. Something, therefore, best left to the specialists at FH Appraisals.
Our appraisers have years of experience and are registered in the Dutch Register of Real Estate Appraisers (NRVT) and are TMI (Taxation Management Institute) certified. Due to the strict requirements of permanent education, we are always aware of changes and developments in the market. Our valuation reports therefore meet the requirements of all major banking institutions in the Netherlands. In short, for the valuation of your commercial property you have come to the right place at FH Taxaties.