What Is Valuation? The International Valuation Standards are the basis for valuation standards in over hundred countries over the world and major real estate markets.
Valuation is an economic concept. It is the process of estimating the likely market price of a property if it is sold. In other words, a valuation is an opinion of what will happen, not what should happen. Valuation is not an exact science or just simply mathematical process, in fact, valuation is mixture of both art and science. The scientific part relates to the analysis of data and mathematical calculation of value. While the art part, relates to the skills of knowing which information to use and process of making judgment and forming opinions.
Valuation International Standards
The purpose of the valuation and the type of property that is to be valued will determine the basis of the valuation and the techniques that should be employed. The International Valuation Standards (IVS) issued by the International Valuation Standards Council (IVSC) are the basis for valuation standards in over hundred countries over the world and major real estate markets. Valuation is an integral part of the risk management processes applied by financial institutions and other businesses. The Importance of International Standards is to drive Transparency, Market Efficiency and Attract Investment into UAE Construction and Real Estate Market
The wide acceptance of the international standards provide consistency on the key definitions of value and the bases of valuation. While there is a broad consistency on definitions and bases of valuations, the valuation methodologies adopted tend to reflect local custom and practice
“As a consequence of globalisation, market efficiency requires market consistency, transparency and comparability. International standards are the backbone”
A valuation report is a brief report that involves an inspection but not a survey of the property. It is based on a limited inspection and it is advisable not to rely on it solely in deciding on whether or not to purchase a property. It will not involve reporting on disrepair items unless they are essential enough to affect value or saleability. Our valuation reports are adequate if you only require information about the property value and do not require detailed information about the property condition.