Specific Methodology for Land and Buildings Valuation: –This methodology entails three approaches/phases i.e. Pre field Work Phase, Field Work Phase and Post Fieldwork Phase.
Pre Field Work:- Under this phase, we try as much as possible to; insist on written instructions to undertake the assignment, acquaint ourselves with all the particulars of the property; inform occupants, tenants, local area leaders or police of our impending field inspections; organize the requisite team and paraphernalia like GPS devices, tape measures, total stations, cameras, note pads, etc depending on the size of work; and liaise with our contacts in key land offices to undertake title searches on the property with a view to verifying the authenticity of details on the Photostat copies of titles availed to us.
Field Work Phase:-During this phase, our team undertakes site visits, Takes note of key site information like shape of the plot, terrain, property measurements, accommodation details, pictorial evidence of different elevations of the property, Carries out boundary opening to verify that the plot being valued is the one on both the print and on ground. This also identifies encroachments onto the land if any, Collects all relevant market information of the immediate and general neighborhood and draws site layout sketch plans and location maps.
Post Field Work Phase:- during this phase, We analyze all market data garnered from the report and prepare a draft report, Draft Report reviews done by head of valuation on values returned., Peer Reviews of valuations with other professional colleagues, Directors Review of the report before a final report is printed, Quality assurance checks – before the report is delivered to the client. This is to make sure the report conforms to both our client’s standards and international standards, Preparation of a formal valuation report indicating the market values, Report Submission. We submit two copies directly to the client.
Specific Methodology for Plant and Machinery:-Our valuation technical team establishes the Depreciated Replacement Costs of the plant and Machinery. The method of computing the depreciated replacement values is arrived at by taking the Gross Current Replacement Cost less depreciation. The Gross Current Replacement Cost of an asset is defined as the amount of money required to reproduce a new similar item with the same capacity and in a similar location. This cost includes taxes that would be levied and freight charges if the asset would have to be transported to its final location. Depreciation would be defined as the measure of wearing out, depletion or other loss of value of the fixed asset, whether arising out of use, effluxion of time or obsolescence. Depreciation is quantified considering both functional obsolescence and economic obsolescence.
The Valuation Engineers inspect and ascertain the condition of the plant and machinery and thereafter arrive at their values. As part of their specific exercise, the Valuation Engineers:
- Peruse through the available data to obtain the histories of the machinery to be valued, to establish their dates of acquisition and records of maintenance. We; Inspect and categorize each by; name, type, power, capacity, model and condition of repair, Take photographs and describe the use and functions of each accessory; Take note of the location, condition and age.
- Obtain the specific suppliers costs for the machinery (at C.I.F) and their estimated lifetimes. Life here is defined as the period between acquisition of the asset and its anticipated retirement.
- Establish the estimated future life the vehicles have and compute their depreciated values.
- Prepare appraisal schedule for every item detailing the equipment by; description, quantity, condition rating/ depreciation, remark and value;
- Review of the report with a view to aligning it to internationally acceptable standards;
- Report Submission.