Skip to main content
Conference Proceedings

Mineral Valuation Methodologies Conference - VALMIN 94

Conference Proceedings

Mineral Valuation Methodologies Conference - VALMIN 94

PDF Subscribe Add to cart

The Comparable Sales (Real Estate) Method of Valuation

The ""comparable sales"" method of valuation
attributes value to an asset by reference to actual sales
of comparable assets or to the market capitalisation of
companies with comparable assets. This methodology
is widely used in real estate valuations. The real estate approach can be used to value mining
and exploration properties where there are actual sales
of comparable or similar assets in the recent past. The practical limitations of the comparable sales
method are well known and self evident: limited number
of transactions, limitations on comparability and
inadequate data. The real value of the comparable sales method is in
its use as a validity check. Estimates of value of mining
and exploration assets are so sensitive to so many
variables that all valuation methods have limitations.
Accordingly there is real value in attempting to establish
benchmarks from comparable sales. Apparently sophisticated valuation methods can
mislead by creating the impression that valuation is a
precise science. The judgement of the valuer is critical
and judgements can be wrong. Any available evidence
from actual sales that are even remotely comparable
can provide useful input to the valuation process.
Return to parent product
  • The Comparable Sales (Real Estate) Method of Valuation
    PDF
    This product is exclusive to Digital library subscription
    Subscribe
  • The Comparable Sales (Real Estate) Method of Valuation
    PDF
    Normal price $22.00
    Member price from $0.00
    Add to cart

    Fees above are GST inclusive

PD Hours
Approved activity
  • Published: 1993
  • PDF Size: 0.237 Mb.
  • Unique ID: P199410020

Our site uses cookies

We use these to improve your browser experience. By continuing to use the website you agree to the use of cookies.