Comparative Method

Question 1

6 steps

Describe the Methodology Behind Using the Comparable Method of Valuation?

Answer 1

Search and select comps

Verify information (triangulated approach)

Produce Schedule

Adjust comparables according to a hierarchy of evidence

Analyse comparable evidence to form opinion of value

Report value and prepare file note

Question 2

What did the RICS Recently publish in relation to valuation and the use of comparable Evidence?

Answer 2

RICS Guidance Note Comparable Evidence in Real Estate Valuation (October 2019). Highlights that a valuer should use professional judgement to assess the relative importance of evidence on a case by case basis.

Question 3

How would you find relevant comparables?

Answer 3

Inspect local area to find recent market activity by seeking agent’s boards

speak to local agents

third party databases

auction sites

Question 4

Why should one be careful of using auctions for comparable evidence?

Answer 4

Price shown is gross price, there may be a special purchaser or it may be an insolvency sale.