"I want to know the value of the property I want to buy." was the response of one of the clients who called on our valuation services yesterday.

What can we understand from this answer? The fact that value represents, from the customer's perspective, the main element in the evaluation process.  

But what is value? Value is an authorized opinion, either on the most likely price that would be paid for an asset in an exchange, or on the economic benefits resulting from owning that asset.

In a valuation process, regardless of the type of asset being valued, it is essential that the type of value is appropriate to the terms of reference and purpose of the valuation, as the type of value can influence or even dictate the selection of valuation methods, input data and assumptions, and ultimately the valuer's conclusion on value.

According to the Valuation Standards, the types of value are defined as follows:

– Market value;

– Market rent;

– Fair value;

– Investment/subjective value;

– Fair value;

– The value of synergy;

– Liquidation value.

What does each type of value represent and what purpose does it serve? We will answer these two questions in a future article where we will detail all these aspects.

The valuer chooses the relevant type(s) of value in accordance with the terms of reference and the purpose of the valuation. The identification and selection of a type of value should be carried out by the valuer taking into account the instructions and information received from the client and/or its representatives. For this reason, our recommendation is to provide the valuer from the outset with all the information and documents requested so that he can understand and respond to your request.

If you have not yet found an appraiser who can answer all your questions about the valuation process, you can confidently call on one of FairValue's appraisers. The over 70 authorized appraisers from across the country, most of whom are senior in the field, are ready to answer any of your requests. All you have to do is call them now with confidence.

We guarantee their professionalism.