Valuation

Question 1

What are the 5 Methods of Valuation

Answer 1

Comparable Method
Investement Method
Residual Method
Profits Method
Contractos Methdod - Also known as Depriciated Replacement Cost

Question 2

Explain to me when you would use the Comparable Method of Valuation?

Question 3

What is the definition of ‘Market Value’

Answer 3

the ESTIMATED AMOUNT for which an ASSET OR LIABILITY should EXCHANGE on the VALUATION DATE between a WILLING BUYER and WILLING SELLER in an ARMS LENGTH TRANSACTION, After proper marketing and where the parties had each acted KNOWLADGEBLY, PUDENTLY and without COMPULSION

Question 4

What is PS1

Answer 4

PS1 = Compliance with standards where a written valuation is provided
It is MANDATORY

Question 5

What is PS2

Answer 5

Ethics, Competence, Objectivity and disclosures

Also MANDATORY

Question 6

What is the definition of market rent

Answer 6

The estimated amount for which an interest in real property should be leased on the valuation date between a willing lease or I’m willing Lesor on appropriate lease terms in an arms length transaction after proper marketing and where the parties had each acted knowledgeably prudently and without compulsion