Property valuation is a process of forming an opinion of value-in-exchange under certain assumptions. Supply and demand within the property market as whole and specific submarkets will be changing all the times and therefore a valuation is a snapshot estimate of exchange price at a particular point in time. We are confident that our appraisal is accurate and reasonable based on following approaches:

Market value is the estimated amount for which a property should be exchanged on the date of valuation between a willing buyer and a willing seller in an arms-length transaction after proper marketing wherein the parties have each acted knowledgeably, prudently, and without compulsion.

Valuation Method

  1. Sale Comparison Approach

Sale comparison approach is a method of estimating the value of a property in which a subject property is compared with recent sales of similar and comparable properties in the market. The basic premise of the sale comparison approach is that the market will establish a value for the subject property in the same manner that the values of comparable, competitive properties are established.

  1. Cost Approach

         The cost approach is one of three basic valuation methods. The others are market, or sale comparison, and income. The fundamental premise of the cost approach is that a potential user of real estate won’t, or shouldn’t, pay more for a property than it would cost to build an equivalent. The cost of construction, plus land, therefore is a limit, or at least a metric, of market value. There are some fairly large assumptions embedded here. One of the basics is that there is a sufficient supply of biddable land that construction is a viable alternative to the purchase of an existing property

  1. Investment Approach

This approach considers the net income that a property might generate, typically in the form of rent, and this income is capitalized by using an appropriate yield at eh suitable target rate of return.