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What are the different types of property valuation methods?

There are five main ways to value a property. The one used will depend on the type of property. For example, a property valuer will use the comparison method to ascertain how much a residential property is worth, whereas the profits method, residual method, investment method, and contractor’s method are used to value a commercial property. The exact method used will be determined by the nature of the property, whether it is an ongoing business, land being developed, leasehold or freehold, or unusual in nature. Often, a combination of more than one valuation method is used to produce a more accurate figure.

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