VALUATION AND ITS METHODS
Valuation process determines a property's current market value by analyzing factors like location, materials, and structure, and employing methods such as cost-based, rental, or profit-based approaches. Common methods include the cost method (estimating construction cost minus depreciation), the rental method (based on income potential), profit-based valuation (for income-generating properties), direct comparison (comparing with similar properties), the development method (for new developments), and the depreciation method (accounting for value loss over time). Steps in the Valuation Process Define the Purpose : Clearly establish why the valuation is needed, such as for buying/selling, taxation, loan security, or rent determination. Gather Information : Collect details about the property, including its location, size, features, and the quality of materials used. ...