Market value basis of valuation

The most widely required and main basis of valuation of real estate for most valuations around the globe. The valuations are required for purposes such as purchasing property, selling property, for accounting purposes (both private and governmental), for securing loans (personal or business), for submission to regulatory authorities and for statutory purposes including taxation. The market value is a representation of value in exchange, or the amount a property would bring if offered for sale in the (open) market at the date of valuation under circumstances that meet the requirements of the market value definition. To determine market value, a valuer must first determine the highest and best use of the property. The highest and best use of a property is the most probable use of the property. That use may be for continuation of a property's existing use or for some alternative use. The most common methods used to estimate market value include the cost approach, sales comparison approach and the income capitalisation approach, including discounted cash flow analysis but fundamental to the determination of market value by these methods is that they are arrived at based on market derived data.