Appraisal

The valuation study is undertaken by four principal methods applied worldwide:

1. Cost Method
This method is usually applied for real estates such as factory, hotel, holiday village, and office blocks, the transactions of which occur very rarely in the market. The assumption in this method is that a potential buyer would not pay more than the replacement cost.

2. Comparable Method
The valuation in this method is based on the sales/rental prices of comparable properties the transactions of which have taken place within a short time of the valuation study. The transaction/asking prices are corrected according to appropriate comparison criteria by the application of correction operations.

3. Income Capitalization Method
If the future income which will be derived from the property may be determined, income capitalization method is used.

4. Development Method
This method, usually applied in valuation of fields/lands, is based on the assumption that the highest and best use on the subject property will be the principal means to determine the value of the subject field/land.

Would you like to learn the valuation process Kuzeybatı Consultancy team applies for your valuation reports?