The Art View on Valuation
The life of a valuer is pretty tough at the best of times, even with the benefit of good comparable evidence. This is because valuers are carrying out transaction analysis in the most imperfect market that exists. This is why valuation is often described as both an art and a science.
Before a valuer starts to worry about the valuation methodology and analysis, the basis of value needs to be defined, this represents the fundamental measurement assumptions of the valuation. For the purposes of this article, I will focus on the most common basis of value, market value.
This is defined by Valuation Practice Statement 4 in the RICS Valuation Global Standards 2020 as: Continue reading Valuation in crisis– Art versus Science – The Art View