An investigation into the nature of the valuation service offered to business occupiers
Wyatt, Peter
An investigation into the nature of the valuation service offered to business occupiers - London RICS 2000
A research project commissioned by the former Incorporated Society of Valuers and Auctioneers (ISVA) and the Pat Allsop Charitable Trust examined the nature of the valuation service offered by valuers to their corporate clients. The aim of the research was to identify the requirements of corporate clients with regard to valuation advice and make to recommendations for any changes to valuation practice that may be required to accommodate those requirements. This paper will report the results of a postal questionnaire survey of 300 businesses into the role of real estate and the use of valuations. This survey was supported by 18 structured interviews and an analysis of 73 sets of accounts. The results showed that valuers have the opportunity to use their property skills to help assess the worth of alternative property strategies on behalf of business occupiers. However, despite valuers becoming increasingly involved in measuring corporate efficiency and valuations being used for this purpose, business occupiers do not recognise valuers in a strategic decision-taking role. Instead, many firms see valuers as providing a single valuation service - market value - used for purchase/sale decisions and corporate disclosure. The research suggests that valuations do have a role to play in the provision of more strategic business advice but the valuer will need to understand the clients' wider business needs and how real estate plays a part in the client's business. Competition from more business-orientated consultants such as the large accountancy firms mean that the valuation service needs to be considered from the client perspective to a greater extent. Historic emphasis on technical and professional skills that are required for valuation has limited the ability of valuers to identify new market opportunities for their services. Valuers need to convince clients that they are not overly technical in their outlook, have broad business skills that include strategic thinking and an awareness of business issues. This item is no longer available.
An investigation into the nature of the valuation service offered to business occupiers - London RICS 2000
A research project commissioned by the former Incorporated Society of Valuers and Auctioneers (ISVA) and the Pat Allsop Charitable Trust examined the nature of the valuation service offered by valuers to their corporate clients. The aim of the research was to identify the requirements of corporate clients with regard to valuation advice and make to recommendations for any changes to valuation practice that may be required to accommodate those requirements. This paper will report the results of a postal questionnaire survey of 300 businesses into the role of real estate and the use of valuations. This survey was supported by 18 structured interviews and an analysis of 73 sets of accounts. The results showed that valuers have the opportunity to use their property skills to help assess the worth of alternative property strategies on behalf of business occupiers. However, despite valuers becoming increasingly involved in measuring corporate efficiency and valuations being used for this purpose, business occupiers do not recognise valuers in a strategic decision-taking role. Instead, many firms see valuers as providing a single valuation service - market value - used for purchase/sale decisions and corporate disclosure. The research suggests that valuations do have a role to play in the provision of more strategic business advice but the valuer will need to understand the clients' wider business needs and how real estate plays a part in the client's business. Competition from more business-orientated consultants such as the large accountancy firms mean that the valuation service needs to be considered from the client perspective to a greater extent. Historic emphasis on technical and professional skills that are required for valuation has limited the ability of valuers to identify new market opportunities for their services. Valuers need to convince clients that they are not overly technical in their outlook, have broad business skills that include strategic thinking and an awareness of business issues. This item is no longer available.