As we now know, it took awhile for the impact of the collapse of the financial markets back in 2007 to reach us here in Bermuda but when it finally did two to three years later the results were staggering, with house prices falling up to 50 percent at the lower end of the condo market.It should be noted that it is not just the lower end of the market that is suffering; even pockets of the luxury home market have seen dramatic decreases in value. One property sold at the end of 2011 for approximately $20,000,000, which was $10,000,000 less than it cost to build or acquire.The properties which seem to have fared the worst are the 'second hand’ inventory requiring work or renovations such as new kitchens and bathrooms or re-plumbing and rewiring and this applies across the market.At present, purchasers in general are looking for modern and/or refurbished homes, with little to no work to do.It's not only the residential market which has been affected as we have seen dramatic declines in property values over the last few years across the board.An example of this is the City Centre offices which had at one time achieved rents over $65 per square foot and are now struggling to let at rents of a mere $30 per square foot which obviously impacts their values. Interestingly, the most prime office accommodation is still able to achieve rents of around $85 per square foot.Whilst for most of us our homes are the single biggest investment we will make, for some it forms a part of their investment portfolio and in either case in these uncertain times, it is important to be aware of what one's nest egg is worth, especially if it forms part of your retirement plans.Whether you are looking to buy or sell a property it is important to know whether you are doing so at market value. Gone are the days of putting a property on the market at an inflated price and hoping for offers, as there are too many other properties out there which have been realistically priced to catch the potential purchaser's eye.Similarly it is important to know what your house or property is worth before you start building or improving it. Too often we get called in to value a property partway through the building process, only to have to tell the owner that their finished product will be worth less than the cost of acquiring the site and building. It is a classic case of cutting the cloth to fit the suit. Often people overcapitalise the site, building too large or at too much expense in the wrong location.The banks will also want to know the value of the property they are lending on, whether it is an existing or proposed building and will usually insist on an independent valuation to be carried out by a Member of the Royal Institution of Chartered Surveyors (RICS), or the equivalent.Whilst a Chartered Valuation Surveyor needs to keep up to date with what is going on in the marketplace, thus necessitating the need for us to work alongside agency colleagues, the Surveyor needs to remain independent of them. Being a member of the RICS requires us to adopt and maintain a code of conduct, ensuring we remain professional and independent.So the answers to the questions you have all been waiting for; has the market bottomed out and is it time to think about reinvesting in property?ResidentialWell, if the amount of interest that we have received in residential property since the beginning of the year and the Government's relaxation of ownership restrictions and reduction of license fees is anything to go by, we remain optimistic.Another positive sign is that we have also seen increases in the amount of overseas buyers looking to buy a second home in Bermuda.However, we will not know until that interest materialises into actual sales.One of the problems we are seeing is the amount of choice out there with over 400 homes currently on the market, which is good for the potential purchaser but can make decision making difficult. This process can be made easier by seeking advice from a licensed realtor who has key market knowledge and can guide you through the process having taken into account your requirements and resources. Certainly there are some bargains out there especially for those who are willing to get their hands a little dirty and undergo upgrades, but remember to ensure that the end product does not cost more than it's worth.CommercialCurrently rents are not high enough to make it viable to build new spaces, as the returns are too low to warrant doing so unless it is a state of the art building in a 100 percent prime location such as the recent developments on the waterfront. Perhaps this non viability explains the current apparent resurgence of interest in existing commercial buildings that we have seen in the last 9 months, with the sale of Whites Supermarket in Warwick, Wheels Cycles and the Olympic Club both on Dundonald Street and the British American Building on Front Street.For now we remain cautiously optimistic.This week’s column was submitted by Steve Bowie, MRICS, Manager, Professional Services, Rego Realtors