The estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arm's length transaction, after proper marketing, wherein the parties had each acted knowledgeably, prudently and without compulsion. A property must be appraised in terms of its highest and best use. The definition of highest and best use is as follows:
The reasonable, probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. In some cases, a proposed use might be the highest and best use but for some cost that changes the net economics. An example might be an industrially-used site that.
In practice, the most common valuation method used by Certified Practising Valuers is the Comparable Sales Method. It uses a small number of recently sold properties in the immediate vicinity of the subject property to estimate the market value of its attributes. Adjustments to the comparables may be determined by trend analysis, matched-pairs analysis, or simple surveys of the market.
Speedy inspection and competion of Sworn Market Valuation are often required to complete the Bail Application.
A financial transaction which involves buying or transferring of property from one individual or legal entity to...