What is a Property Valuation?
Market value in terms on real estate is best defined by the International Valuation Standards Council as:
The estimated amount for which an asset (Fixed property) should exchange, on the date of valuation, between a willing buyer and a willing seller, in an arms-length transaction, after proper marketing, wherein the parties had each acted knowledgeably, prudently and without pressure
This analysis should be done as accurately as possible, whilst taking into consideration ALL factors which might affect the valuators professional opinion on the date of valuation and in terms of:
- Market and economic conditions
- The physical condition and appearance of the property
- The area in which the property is situated
- Surrounding properties and amenities
- Functionality and practicality of the property
- Finishes and fixtures
- Workmanship
- Realistic Replacement rates/m 2 (should be obtained from accredited contractors)