We often get phone calls from clients that want a Valuation of their property and refuse to disclose the reason. Valuation Surveyors usually insist on clear instructions because before a property valuation exercise can be undertaken. The professional Valuation Surveyor assigned for the exercise has to establish the reason or purpose for the property valuation exercise is needed. By this, they will be able to apply the appropriate basis of valuation and necessary valuation methodologies in arriving at the opinion of value.
The conventional five (5) different valuation methods that can be adopted by a Valuation Surveyor when carrying out a property valuation report exercise are; Comparative/Comparison Method, Residual Method, Cost/Contractor’s Method, Investment Method and Profits/Accounts Method.
There are a number of reasons and purposes why a property valuation exercise is embarked upon. Some of these are; Sale or Purchase, Probate, Auction, Compensation, Rating and/or Taxation, Balance sheet, Insurance, Mortgage, Going concern, Loan advancement.
To get more out of a property valuation, be clear on the reason you need it.
