Desktop vs. Physical Valuations: When Are They Appropriate?

Desktop vs. Physical Valuations: When Are They Appropriate?

When valuing assets, property or businesses, two main types of valuation are used: desktop and physical. Understanding the differences can help you choose the right approach for your needs.

What is a Desktop Valuation?

A desktop valuation is exactly what it sounds like—a valuation conducted remotely using information supplied to the valuer along with market research. This might include details such as:

• Asset make, model and specifications

• Photographs

• Finance documents

• Repair estimates

• Property addresses and title documentation

• Lease agreements

The more accurate and detailed the information provided, the more reliable and informed the valuation will be.

What is a Physical Valuation?

A physical valuation involves an on-site inspection of the asset or property. This hands-on approach allows the valuer to assess the condition and other factors directly, providing a higher level of certainty.

• For properties, this means a walk-around inspection of the building, land, and surroundings.

• For chattel assets, it involves a detailed physical examination, which can reveal aspects impacting value that photos alone may not show.

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Limitations of Desktop Valuations

Desktop valuations rely on a series of assumptions, and any deviation from these can affect the final value. Common assumptions include:

• Machinery is CE certified, where required

• The client holds full legal title to the asset or property

• Compliance with all environmental, health, safety and welfare regulations

• Accuracy of information provided by third parties

• The property is in good condition with no hidden defects

• Services and utilities are fully operational

• The asset or property is free from contamination or hazardous materials

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Challenges with Desktop Valuations

Properties:While some information—like title documents, past sales, and planning consents—can be found online, many critical details remain unknown without an inspection. For example, recent photos are essential to verify current condition and it can be especially difficult to gather complete information on flats or apartments, such as the number of bedrooms.

Chattel Assets:There is no centralized database for historic sales of assets like machinery, making desktop valuations more complex. We can gather comparable data from dealer bids, recent sales, auction results and other sources, but these require careful interpretation.

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When Are Desktop Valuations Suitable?

Desktop valuations are typically more cost-effective and quicker to produce than physical appraisals. They are useful for:

• Providing an early indication of value

• Deciding whether a physical inspection is necessary

• Valuing intangible assets like intellectual property or goodwill, where no physical asset exists

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How Proudley Associates Can Help

At Proudley Associates, we conduct both desktop and physical valuations across a wide range of assets, properties, and businesses. With extensive experience and industry knowledge, we can advise on the most appropriate valuation method for your situation.

If you or your clients would like assistance, please contact us at:

📞 01425 200366

📧 op@proudleyassociates.com