V – Compendium of Real Estate Terms & Concepts

According to Real Estate Dictionary, this is a systematic method used by a Valuer (otherwise known as an Appraiser) to derive a value estimate. Steps in the valuation process are: • definition of the problem • preliminary analysis • data collection

Knowledge of basic assumptions, postulates or premises that underlie appraisal methods is essential to an understanding of the purpose, methods and procedures of valuation. Principles of valuation influence the general understanding of the appraisal process. these principles include the following:

In the context of a business valuation, the Valuer/Appraiser considers many factors, including the following:  Financial attributes (sales and profitability trends, noncash expenses, capital expenditures, tangible and intangible assets and liabilities, contracts, contingent liabilities, and others)

It is a widely held view in certain school of thought that valuation is a subjective subject. The implication of this view is that valuation of real estate assets is based largely on personal opinions but, which anchored on:

Letter of Intent from client: To engage the services of an Estate Surveyor and Valuer, say for the valuation of the assets of a company or corporation, the first step is to get in contact with the firm by issuing a Letter of Intent requesting that the firm undertakes to…

This is a supposition taken to be true. It involves facts, conditions or situations affecting the subject of, or approach to, a valuation that, by agreement, need not be verified by the member as part of the valuation process.

Valuation simply means the estimation or assessment of worth of a particular asset for a particular purpose and for a given period of time. It seen as the art and science of estimating or determining the monetary worth or value of an interest in a property for a specific purpose,…