MARKET VALUE – COMPARABLE SALES

QUESTIONS

1 List 4 advantages and 4 disadvantages in using the following sale sources for valuation purposes:

• real estate agents
• Valuer General or appropriate government department.
• Land Titles Office
• the real estate section of the Saturday newspaper.

2 When should the valuer call for a copy of the contract of sale in lieu of secondary sale evidence?

3 When should the valuer call for a copy of a lease agreement in lieu of secondary rental evidence?

4 When can family sales be reliable evidence of value?

5 When can adjoining owner sales be reliable evidence of value?

6 Why are the notice of transfer and contract of sale legal documents?
What are the main advantages of using such documents for the valuer?
What has to be paid to make a contract of sale a valid court document?

7 "Exposure to market is the acid test of a good sale for valuation purposes."
Discuss this statement.

8 Discuss the possible problems from a valuation point of view, when a valuer uses a "mortgagee in possession" sale.

9 "The more that I analyze sales, the more certain I am that there is no general rule or model of value. Rather, each sale is an unique combination of personal and individual factors determining a consensus or agreement."

Discuss the above quotation comparing a general or "scientific" theory of value with a more personal and individualistic view.

9 "Valuers are making greater use of printed sale summaries supplied by either private companies or government departments." Why?

What are the advantages and disadvantages of using such commercial sale summaries?


10 "The rise in tertiary sales information has led to greater convenience for the valuer. "

What other advantages may accrue from the use of tertiary information?
What are the disadvantages compared to the use of a primary source such as a Notice of Transfer?