The four main methods used to value residential and commercial properties are the comparison method, the profits method, the residual method, and the investment method. The comparison method is typically used for residential properties, but can also apply to offices, shops, and warehouses. This looks at historic price data and compares it to current data. However, the market needs to be stable for an accurate valuation. The profits method is helpful for commercial businesses such as hotels and restaurants. The residual method is applicable for land that is intended for development, and the investment method helps ascertain the value of a freehold or leasehold.
