About property valuation:

Property valuation is the process of estimating the value of a property based on its location, condition, and other factors. The goal of property valuation is to obtain a value for a property, which is most commonly sought for sale or property tax purposes. A qualified surveyor conducts the valuation in person, taking notes and pictures, and provides you with a valuation report thereafter.

There are four types of property valuation i.e. demand, utility, scarcity, and transferability.

Some methods of property valuation include:

1. Sales Comparison Method

        Also known as the market data approach, this method helps valuers analyze the current market rate of properties of a particular region to create a valuation report.

   2. Cost Approach

        This method follows the premise that the value of a building should be roughly equivalent to the cost one might incur in building an identical structure. This method is used for                  properties that are constructed, instead of frequently sold such as schools and hospitals.

   3. Residual Method

       This approach is utilized for properties purchased with the aim of renovating or improving them to boost their value. It entails subtracting expenses and the developer’s profit from            the anticipated final development value.

   4. Investment Method

       This method factors in future property costs, offering insight into potential rate increases over a significant period, providing a clear idea of assured appreciation.