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Real Estate Valuation

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Real estate valuation is an expert service that determines the value of immovable property. Usually, the estimate is ordered to support decision-making in connection with credit, taxation or transactions.

LogisTila prepares a written valuation book reliably and impartially in purchase, sale and rental situations, in connection with inheritance and division, in collateral arrangements and business arrangements, and for taxation.

An unbiased and reliable estimate is based on market information about the area and the condition of the real estate.

Who can make real estate valuations?

Real estate valuations can be done by professionals who have completed a certified broker degree. For the most demanding tasks, you should turn to an authorized real estate valuer. The Real Estate Appraisal Board of the Central Chamber of Commerce authorizes real estate valuers and supervises their activities. The activities are regulated by the rules of the real estate evaluation board, good real estate evaluation practice and international evaluation standards, IVS.

LogisTila's service is supported by experienced real estate professionals. In addition to valuations, our staff has extensive experience in, for example, real estate brokerage, real estate management, real estate law and commercial consulting. In addition to the certified broker qualifications, our staff has one authorized real estate valuer qualification.

Commonly used valuation methods

The most commonly used valuation methods in real estate valuation are the market value method, the yield value method and the cost value method. In practice, several methods are often used in parallel to ensure the best end result.

The market value method is the most common in valuating the fair value of residential apartments and real estate. When the real estate to be valuated is compared to the realized sale prices of other real estate, the method is simple and effective, if there are enough comparison sales. Challenges arise if the representativeness of comparison sales does not withstand the comparison (features of properties, premises, independent sales vs. donations, regional differences, rapid market changes).

The yield value method is often used in the valuation of premises. In the yield value method, the value of the appraised real estate is defined based on the net rental income from the real estate. It is important to find out the occupancy rate of the real estate, the market conditions of the contracts and the length of the lease. When making an investment decision, the yield available from the real estate is compared with alternative investment objects.

The cost value method is based on the cost value which corresponds to the probable construction costs of the real estate. Cost value refers to the value defined according to the probable construction costs of buildings similar to the building being valuated. Since the development of construction costs does not necessarily correspond to the development of the real estate market, the cost value method has nothing to do with the property's yield value or market value. The cost value method is best suited for valuating new buildings if new construction is a real option.

Do you want an offer for LogisTila's real estate valuation? Contact us.

You can also contact our staff directly:

Ulla LyytinenUlla Lyytinen
Business Manager, certified broker, authorized real estate valuer
p. +358 40 776 0538