VALUATION OF LAND AND BUILDING: THE THINGS YOU SHOULD KNOW
WHAT IS VALUATION? Valuation is the determination of the amount for which a property will transact on a particular date. Accurate real estate valuation is important to mortgage lenders, investors, insurers, buyers, and sellers of real property. Estimating the value of the real estate is necessary for a variety of endeavours, lenders need a valuation to make financing decisions, realtors need it for sales listing, investors need it for investment analysis, and insurers need it for property insurance, and government departments need it for taxation. But for most people, determining the asking or purchase price of a piece of real property is the most useful application of real estate valuation. This article will provide an introduction to the basic concepts and methods of real estate valuation, particularly as it pertains to sales. Methods of Valuation An estimate of a property's value must take into consideration economic and social trends, as we...