Valuations are also useful when it involves litigation. You may have divorce proceedings and properties need to be shared;
Valuations are also useful in the case of insolvency;
Valuations are also done for the purposes of insuring against a risk or peril.
Methods of Valuation
The following are some of the methods that are used to do valuations. They are as follows: -
Open Market Value - this is the price that the market will bear for the property including the land. This is based on the market forces of demand and supply. Open Market Value is influenced by its location. For instance, a well maintained property, on a beach front, would be valued at a higher
premium than Replacement
a property away from
reinstatement cost which is “Fire Insurance Valuation”.
often referred to It is the cost
rebuilding or replacing current prices;
Valuations done at cost;
Valuation based on cost
Comparative Method of
before or at a price, for which the property been transacted recently; The First Sale Value - this is the price that property would attract in the open market if period allowed for marketing or advertising
the the was