Our methods

The direct comparison method or market approach

This is the most commonly used method, which consists in determining the value of a property by precise analysis of other similar properties in terms of nature and location, that have been sold as recently as possible to the date of valuation. The surveyor will start by searching for and selecting relevant comparisons and will then make his valuation based on a thorough and objective analysis of such comparisons.

The replacement value method
(or land building method)

This involves assessing the re-sale value of a property (land and building), and then deducting a relevant amount (for dilapidation, obsolescence, market unsuitability). This method is rarely used for establishing a market value, but more often for very specialist properties, or to establish a utility value, or in the case of property seizures.

The replacement value method (or land building method)

This involves assessing the re-sale value of a property (land and building), and then deducting a relevant amount (for dilapidation, obsolescence, market unsuitability). This method is rarely used for establishing a market value, but more often for very specialist properties, or to establish a utility value, or in the case of property seizures.

The residual valuation method (or property development method)

This consists in determining the value of a plot of land, a development site or a building in need of renovation or refurbishment, by first establishing an appropriate final sale price and then deducting the cost of necessary work and fees.

Financial methods

Income capitalisation methods, or discounted cash flow analysis methods, consist in valuing a property in relation to the income it might generate. This means that theoretically one can assess whether investing in a project will be more beneficial than other forms of investment. In this case, the role of the valuation surveyor is to determine potential revenue at current market levels (fixed or potential rental income), to appraise the probability of cash flow, to evaluate the yield rate to be used to capitalize on this income and to estimate the risk premium to gain said yield. These methods are applied mainly to business properties or investment properties.

Financial methods

Income capitalisation methods, or discounted cash flow analysis methods, consist in valuing a property in relation to the income it might generate. This means that theoretically one can assess whether investing in a project will be more beneficial than other forms of investment. In this case, the role of the valuation surveyor is to determine potential revenue at current market levels (fixed or potential rental income), to appraise the probability of cash flow, to evaluate the yield rate to be used to capitalize on this income and to estimate the risk premium to gain said yield. These methods are applied mainly to business properties or investment properties.

So-called “Professional” evaluations

These concern specific or single-purpose real estate categories (clinics, hospitals, hotels, cinemas, theatres… ) when such purpose is to be continued. These methods are actually derivatives of the income and comparison methods.

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