It Has Been Said That the Comparison Method of Valuation Is the Best Method. Do You Agree with This Statement?

It has been said that the Comparison Method of rating is the best mode. Do you agree with this statement? It has been said that the Comparison Method of Valuation is the best method. I personally agree to this statement but I believe there is no perfect valuation method. All methods have advantages and disadvantages. Valuers always prefer to use the comparative method for assessing commercialise grade or market rent, because it links directly to evidence of current market transactions.The other methods profits, residual, contractors and investment are employ when the comparative method rotternot be used with full confidence. The simile method is used to value the primary(prenominal) types of situation for example houses shops offices and nucleotideard warehouses and factories. These are regularly sold or let in the market giving plenty of evidence to support an assessment of rental value or market value of similar properties. The comparison method can be used to calculate the market value of the property and the rental as well all other methods can provide results for one or the other.So this method is mainly used because it provides solid evidence of the propertys value. All other methods can be manipulated by the valuer. This is the reason why the comparison method is the only acceptable method for judicatory usage. When there is little or no evidence of comparable market transactions the valuer needs to stand in the shoes of the most likely purchaser or tenant to simulate their thinking and calculations they cleverness carry out when assessing how much to pay for the property concerned. To perform a valuation with the comparison method The valuer needs to be fully aware of the current economic conditions * The market should be stable * in that location should be plenty of evidence of recent sale in similar properties * In Size * considerateness * Age * Area * Type As I notice today it is very hard to get comparable market transactions simply because there are very few transactions done. save even when we do find comparable date the market is so unstable that they arent reliable. The comparison method of valuation is also a basic component of each of the other methods.It plays a vital role in the Investment method. In the first stage of the investment method we need to discerp property sale transactions to establish the relationship between rental income and the capital prices recently give by investors. So we basically use the comparable data from the comparison method to find a tolerate or a multiplier which expresses the relationship between rent and capital. And finally we use this yield and the rental income of a property to calculate the current value.