There are a few ways to value property
(1) Comparison - Self explanatory. This is using the price transacted for similar properties.
(2) Residual value - The amount a company expects to be able to sell a fixed asset for at the end of its useful life. This is a bit more complicated for a layman like me to explain. Involves certain formulaes and calculations. Perhaps some experts here can help.
(3) Force sale value - This is the value that government valuers will be using in a land acquisition scenario. This is a akin to a fire-sale price which will be much lower than a willing buyer-willing seller as the buyer is willing but the seller is forced.
Hi all,
regarding to the inconsistancy of the value, it probably due to the quality of the comparable property being used and it is also subject to misconduct as well. In both party, either private or government valuer. But what i would like to stress here is, for the government valuer they have most up to date data to arrived with a market value and whereas private valuer they buy the data from government on certain period of time. Due to this, comparable property being used might be different and it result to diffent value.
There are basically 5 method of valuation:
1. Comparison
2. Cost
3. Residual
4. Income
5. Investment
and force sale value is not one of it, to confirm it just ask any property management or real estate 1st year student.
This different methods is being use to serve different purposes of valuation since they have different concept in it as well as the calculation. Comparison for instance, is being used for all type of property and most popular method. Income is use for the property which is generate income mainly from rent while investment method is for property with potential for development based on planning condition.
It is a software in the market we called it SPATIALEST: the integration between MRA + GIS + GEOSTATISTIC. and it will give us consistent value and it is very systematic. However, it is only the enhancement of comparison method and it require large amount data. Suitable for government valuer but not private.
If you wnat to know more about this profession, you may ask any lecturer in public university in malaysia. currently there are 4 universities offered this program at the degree level.
there are: Universiti Teknologi Malaysia, Universiti Teknologi Mara, Universiti Malaya and Kolej Universiti Teknologi Tun Hussein Onn.
(1) Comparison - Self explanatory. This is using the price transacted for similar properties.
(2) Residual value - The amount a company expects to be able to sell a fixed asset for at the end of its useful life. This is a bit more complicated for a layman like me to explain. Involves certain formulaes and calculations. Perhaps some experts here can help.
(3) Force sale value - This is the value that government valuers will be using in a land acquisition scenario. This is a akin to a fire-sale price which will be much lower than a willing buyer-willing seller as the buyer is willing but the seller is forced.
Hi all,
regarding to the inconsistancy of the value, it probably due to the quality of the comparable property being used and it is also subject to misconduct as well. In both party, either private or government valuer. But what i would like to stress here is, for the government valuer they have most up to date data to arrived with a market value and whereas private valuer they buy the data from government on certain period of time. Due to this, comparable property being used might be different and it result to diffent value.
There are basically 5 method of valuation:
1. Comparison
2. Cost
3. Residual
4. Income
5. Investment
and force sale value is not one of it, to confirm it just ask any property management or real estate 1st year student.
This different methods is being use to serve different purposes of valuation since they have different concept in it as well as the calculation. Comparison for instance, is being used for all type of property and most popular method. Income is use for the property which is generate income mainly from rent while investment method is for property with potential for development based on planning condition.
It is a software in the market we called it SPATIALEST: the integration between MRA + GIS + GEOSTATISTIC. and it will give us consistent value and it is very systematic. However, it is only the enhancement of comparison method and it require large amount data. Suitable for government valuer but not private.
If you wnat to know more about this profession, you may ask any lecturer in public university in malaysia. currently there are 4 universities offered this program at the degree level.
there are: Universiti Teknologi Malaysia, Universiti Teknologi Mara, Universiti Malaya and Kolej Universiti Teknologi Tun Hussein Onn.
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