Methods of Valuation Flashcards
1
Q
What are the FIVE methods of Valuation?
A
- Comparable method
- Investment method
- Residual method
- Profits method
- Depreciated Replacement Cost method
2
Q
When would you use the Comparable method?
A
When there’s a sufficient amount of recent comparable evidence that has transacted in the area
3
Q
When would you use the Investment method?
A
When there’s an income producing property
4
Q
When do you use the Residual method?
A
When you are valuing land
5
Q
When do you use the Profits method?
A
For trade related properties where the value is derived from the business and its trading potential
6
Q
When would you use the DRC method?
A
As a last resort when there are no direct comparables.
Unusual buildings e.g the Houses of Parliament
7
Q
A
