Property valuation : the five methods

Completely revised to incorporate recent developments in practice, this second edition of Douglas Scarrett’s established text describes the process of valuation of real estate through its five principal methods: comparative, investment, residual, profits and contractor’s methods. Unlike most existing texts, the book is designed to allow students to read about the methods either chapter-by-chapter or as a whole, thus enabling a deeper understanding of each in its own right as well as how they fit together. Discussing changes in retail practice and the role of accountants in looking at viability of businesses, the book features new case studies, enhanced visual aids, diagrams and tables to help readers visualize the process. It is essential reading for those studying property valuation, in addition to practitioners who will find useful guidance to underpin their practice. Book Cover......Page 1 Title......Page 4 Copyright......Page 5 Contents......Page 8 Figures......Page 12 Tables......Page 13 Preface......Page 14 Abbreviations......Page 15 Acknowledgements......Page 18 1 Setting the scene......Page 20 2 The overall investment market......Page 26 3 The property market......Page 42 4 Valuation mathematics......Page 50 5 The determinants of value......Page 62 6 The comparative method......Page 86 7 The valuation process......Page 102 8 The residual method – the problem......Page 134 9 The residual method – the process......Page 142 10 The profits principle......Page 158 11 The profits principle – final accounts......Page 168 12 The contractor’s test......Page 178 13 Application of the contractor’s test......Page 192 Appendix A: Edited extract from Spon’s Architects’ and Builders’ Price Book......Page 204 Further reading......Page 206 Index of statutes and statutory instruments......Page 208 Index of cases......Page 210 Subject index......Page 212 1. Setting the Scene 2. The Overall Investment Market 3. The Property Market 4. Valuation Mathematics 5. The Determinant of Value 6. The Comparison Method 7. The Investment Method 8. The Residual Method - The Problem 9. The Residual Method - The Process 10. The Profits Principle 11. The Profits Principle - Trading Accounts and Definitions 12. The Contractor's Test 13. The Contractor's Test - Application. Appendix. Further Reading Describes the process of valuation of real estate through its principal methods: comparative, investment, residual, profits and contractor's methods. Discussing retail practice and the role of accountants in looking at viability of businesses, this book features case studies, visual aids, diagrams and tables to help readers visualize the process. A new edition of an established text, this book reflects developments in property valuation practice. Enhanced by new case studies, visual aids and diagrams, it describes the principal methods associated with the process of real estate valuation. Ever since man began to foresake his nomadic existence in favour of permanent settlements, possession and ownership have been the concern of society.