Property valuers use various methods, including profits, comparison, residual, investment, and contractors. The method used by the property valuer will depend on whether the property is a residential one or a commercial one. For example, a property valuer will use the comparison method when looking at a residential home, but the profits method is applicable to some commercial properties such as restaurants, pubs, and hotels. The residual method applies to land that hasn’t been developed or is subject to a change of use. Investment methods look at leasehold and freehold values. The contractor’s method is used when the property is unusual.
