Valuation could be defined as the art or science of value estimation for a specific purpose of a particular interest in property at a particular moment in time, taking into account all features of the property and also considering all the underlying economic factors of the market including the range of alternative investments.
There are different reasons, situations, instances and purposes that call for property valuation “Specific purpose” as used refers to the Client’s objective of the valuation exercise; and this determines what value is to be sought. It will also assist to determine the appropriate basis and method(s) of valuation to be adopted.
Some of the various purposes of valuation are as follows:
- Sale/Purchase (capital value) involving transferring property, ownership or possession
- Financing a property interest through mortgage.
- Taxation of property; capital transfer tax, capital gains tax; withholding tax; tenement rate probate etc.
- Rental valuation.
- Determining a property utilization program through development and re-development.
- Compensation for loss of property interests.
- Nationalization, privatization, concession, commercialization of companies.
- Balance sheet, company merger and take over, investigation, performance analysis of a company insolvency etc.
- Settlement of disputes of asset sharing assets of States in Nigeria.
- Valuation for all purposes of plant and machinery, motor vehicle, furniture and fittings including preparation of inventories.