Approaches to Valuing Property

Approaches to Valuing Property.

Generally speaking there are two kinds of valuation approaches that is: Market-based valuations and non-market-based valuations.

Market-based valuation approaches include the cost approach, sales comparison approach and the income capitalisation approach.

Non-market-based valuations use methods similar to market-based valuations but with different data eg estimate on replacement cost for special property; value estimate for a Special Purchaser; and the application of a special rate of return to arrive at an estimate of Investment Value/worth.

Purposes of Valuation
A valuation of fixed or non-fixed assets may be required for a number of purposes including the following:

  • Mortgage
  • Sale
  • Purchase
  • Disposal
  • Insurance
  • Accounting/Book purposes
  • Taxation
  • Negotiations
  • Financing
  • Compensation
  • Investment
  • Going concern
  • Acquisitions and mergers
Given the information on the Title Deed, a property location can be identified even without a help of the owner. This is achieved by using GPS and deed plan information. This system help in avoiding wrong identification of the property and subsequently protect our clients from unexpected loss. Our valuation reports includes details of the coordinates, the latitudes and longitudes plus satellite imagery of the property in colour print.
Firm has set in place an internal mechanism to double check all the assignments before submission of the reports to the Office of the Chief Valuer for approval, as a quality control measure. The reports are normally passed to senior valuers online, who after thorough review forward it to the Principals of the Company for their perusal and final approval. This process is intended to ensure consistency in quality of our products is always in expected standards and also the reports produced conform to established valuation standards. The works is done with the efficiency that do not impact on agreed turnaround time with our clients.
Works Process in graphic