I recently enjoyed the company of IPAV lecturer Frank Quinn and during our time together we discussed the Irish property market and more importantly that of valuations, he explained that while the investment method of valuations is virtually unused in Irish property that it is relevant, not only for investment properties but also for residential housing.
First it is important to realise that there are two broad ways of valuing a property, the first is where you value at the ‘market’ price, in an upward market this can have the issue of pushing values higher as bidders vie to outdo each other on comparable properties, in a downward market it can be equally distorting, but in a fairly stagnant market the absence of transactions is, of itself a distortion, estate agents can’t look at their own back book of sales for information if that back book is empty.
It is therefore desirable at times, to use the valuation method, it is a simple way of viewing property valuations, it does tend to …