Historic properties are invaluable to the United States, showing the different characters of every era the country has been through. They bring about tourism and jobs, and attract people to living in certain areas. But historic properties are often a whole new ballgame to manage and insure.
The first step to maintaining and insuring a historic property is understanding the property’s value. While property valuation is a difficult subject, it can be broken down in easier terms. It all comes down to finding out the economic value of a historic property. What determines that value is a few factors: location, situation and circumstance, says Understanding Conservation, with buildings being recognized through ownership and occupation also sought.
Here is a closer look at the importance of historic property valuation and how to understand the process.
Why Historic Property Valuation?
The problem with the existence and preservation of a building has to do with the fact that the owners are often the ones who value the property the least. Historic property valuation has to do with what the property brings to the community. If there’s a benefit to society, it could offset any losses on the property. When dealing with the commercial valuation of a historic property, namely in urban locations, the valuation could relate to the value of the site itself, not just the building. If we don’t protect our historic environment, purely commercial economics might result in the loss of much of our built historic heritage. Valuation is valuable; without it, we can’t keep our history for the future generations to love and appreciate. It brings life to a city, energizing society while also boosting the direct economy.
How to Advocate for Historic Property Valuation
You want to have a property properly valued. But where do you go from here? As an advocate for a historic property, you have to speak for the building, even in the face of strong commercial opposition. You have to be able to argue the longstanding value of the property despite whatever commercial loss might be taken. There’s also the availability of grants and funding through the government, but all of that also depends on how compelling your argument about the value of your property is. Be aware of the availability and sourcing of this kind of support.
Getting An Expert Involved
Getting an expert involved that knows how to value your client’s property is also key. The expert should understand the construction, defects that can arise and the financial implications that can come from them. Sometimes getting multiple opinions is also a good thing. It is recommended that your clients get a provisional value placed on a building while waiting for further specialists’ reports, in order to have a figure to work with. Inappropriate advice can prove to be detrimental to the building, so make sure that your clients thoroughly vet any experts and use their discretion. Once your client understands the value of their property, then it’s the right time for historic insurance and other important protections.