Five Methods of property valuation in real estate

[Augusta]

Five different methods can be adopted for property valuation.

These are like the five main methods that can be adopted to get almost the real value for different properties.

The different methods in used are;

Comparison method:
This is one good method to use for residential property valuation. This is the method that takes into consideration current transaction data.

Profits method
This is method that is appropriate for hotels and nursing homes valuation as they are seen as unique properties. the properties are valued as businesses to calculate its value.

Residual method
This is the right method used to assess the land or properties with developmental potential. The value is calculated by assessing the gross end value of the property

Contractors method
This is the last resort method where other valuation methods don't fit in. it is used for very rare property

Investment method
This method use the formula called years purchase to determine the figures for a property. The method gives the value of a leasehold or freehold interest