methods of valuation of freehold in Britain

[zelorgia]

Explain the investment method, replacement cost approach/contractor's method and the comparison method.

[buildersmate]

Someone else with a thesis to write who just copies/pastes the exam question straight into AB.

[EBsonicBoom]

To answer in the simplest form:-

Investment Method - Is usually used when there is an income received from a property, and a multiplier is applied to produce a value.

Replacement Cost Approach/Contractors Method - Used as a last resort, or for Insurance purposes, the cost of replacing a property including the site with new, less any 'ware and tear' or depreciation.

Comparison Method - Easy in principle, find a similar property and compare the values. In reality, no two properties are identical, so adjustments are required to reflect the differences.