There are several benefits to using this service. Sellers or buyers can take advantage of property valuation services in the following ways: • Measure the current market value of the property. • Give a detailed report of the property. • Highlight the benefits of the property. • Highlight the geographical advantage. • Get expert advice and pointers to sell your home. • Determining the feasibility of future development projects • To determine the profitability and income potential of the property.

1. Benefits of Property
Valuation Services

2. • What are the benefits of property valuation services? There
are several benefits to using this service.
• Sellers or buyers can take advantage of property valuation
services in the following ways:

3. • Measure the current market value of the property.
• Give a detailed report of the property.
• Highlight the benefits of the property.
• Highlight the geographical advantage.
• Get expert advice and pointers to sell your home.
• Determining the feasibility of future development projects
• To determine the profitability and income potential of the
property.

4. Valuation Techniques
• When conducting a property valuation, a property valuer may
use a variety of valuation methods.
• To arrive at the valuation figure, the property valuer typically
uses the comparative method, investment method, and
profits method.
• Some properties may require a more detailed analysis to
provide additional flexibility in the property's end value.
• The five methods of property valuation are listed below:

5. Comparative Approach
• This methodology, also known as Inferred Analysis of Property
Value, compares the prices of properties in the same area.
• The final value of the property is calculated using the values
of nearby properties.
• A close examination of similar buildings/properties with
matching characteristics and dimensions is performed using
this method.
• When determining the market value of a residential
property, the comparative method is commonly used.

6. Profits Approach
• Profits Methods are frequently used when valuing commercial
real estate.
• This method is used to determine the market value of
properties such as restaurants, rental office space, malls, and
hotels.
• The valuer determines the property's market value by
averaging the business's average operating income over the
previous three years.
• The profit and loss statement of the company is used to
secure this figure.

7. Residual Method
• This valuation method is useful when an investor, developer,
or owner is determining the value of a property for future
development.
• The Residual Method helps in examining the viability of a
property, whether it has potential for development,
redevelopment, or rental purposes.
• When calculating the property value, the gross development
cost, building cost, property builder/developer profit, and fees
are all taken into account.

8. Contractor's Approach
• The Contractor's Method, also known as the Cost Method,
employs the replacement value of the property technique.
• This method is used when the Comparative Method and the
Profit Method fail to provide an accurate estimate of the
property.
• Each construction component, cost of each construction,
current construction techniques, land value, and
reconstruction cost are all added together in this method.
• To arrive at the final estimate of the property's market value,
a representative depreciation figure is deducted from the
previous number.

9. Investment Strategy
• The Investment Method is a practical method of determining
the market value of commercial properties.
• The property's market value is directly related to its income-
generating potential.
• This method provides an accurate picture by converting
income earned (both present and future) from the property
into an approximate capital sum.
• The valuer in this case uses the discounted cash flow method,
the future cash flows that the property owner will generate
from the property.