ABSTRACT
This chapter examines the valuation process. Underpinning this process is the collection, analysis, synthesis and adjustment, where necessary, of market data. The valuer, armed with plans and detailed measurements of the building, will be able to estimate or obtain an accurate quotation for all insurances, particularly fire insurance. The valuer will be aware of the appropriate market adjustments to make, based on current fees charged by managing agents. Valuers should use averages with care. The chapter examines the need for comparables in the income approach. It outlines the processes for assessing market rent by comparison, net operating income by comparison and capitalisation rate by comparison. The chapter considers many of the factors that have to be taken into account by the valuer when considering what an acceptable property for comparison is and how variations between the subject property and the comparable properties might require an adjustment to be made to the comparable evidence.
