What is valuation?
This is a process used to estimate how much an asset is worth. So if a house is placed on the market for sale, then the services of valuations analysts will be required in order to work out how much the house costs.
Various approaches may be used.
Mostly number-crunching is involved as this process requires accuracy and expertise. Ultimately, the results of the valuation analysis will be used by a range of end-users.
A valuations analyst analyses an asset, business or real estate and estimates an approximate value. In the case of a house, this value may be determined by factoring in its size, age, location and structural features. The amount that is estimated will be used as a valuation figure, to then be used by real estate agents.
The results are presented in a clever and concise manner. This ensures that the information can be interpreted easily by various end-users.
These professionals work on numerous assignments and aren’t just limited to valuation of houses.
Their services are often required for transactions relating to mergers and acquisitions. They may also provide expertise in terms of analysis of investments and financial reporting, among others, like wills and estates or divorce settlements. If a business is being sold, these professionals’ services will provide a great amount of insight into how much it is worth, including assets such as staff and equipment. The estimation will be used to present to potential investors.
Valuations are as of a specific date, while all models have limitations. These professionals are highly skilled at using the right methods.
Valuations analysts continue to be in demand as their skills are highly sought after. With the numerous business transactions occurring on an going basis, their skills will be needed.
