Market value is defined as 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 compunction.
Provided there is an active market for drawing comparisons, residential valuations are perhaps the part of a valuer’s job and an automated (computer generated) valuation report will often suffice. However, where the valuation may be disputed or challenged in court, it is advisable to employ the services of a professional valuer with local knowledge, who is familiar with the subtleties of the market. First and foremost, it is necessary to have a proper understanding of the difference between market value, replacement value, forced sale value, depreciated replacement value and the one hundred and one other definitions of value.
- Sectional title
- Residential estates
- Land valuations