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The nature of the realty and the valuation scope determines which type of value to find out and therefore which method to apply. All methods used are scientific and recommended by the EVSB (European Valuation Standards Board).
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● Cost method
The Cost method is used to value unique real estate that has no similar in the market, nor it doesn't generate income. This is the method that accounts for all the necessary costs (direct and indirect) for the construction of a similar realty to the one in question, this sum is then multiplied by a factor that reflects the depreciation or appreciation occurred, depending on the physical, functional and environmental state of the property.
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● Comparative Market Method
It's the recommended method to find out the market value, it requires a sampling of similar assets for sale on a specific market, afterwards this information is gathered and treated statistically to determine the most influential variables and how much is the leverage they represent in the value of the asset..
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● Discounted Cash Flows Method
This is the method used in the valuation of assets that generate income or hold the potential to generate income over a period of time. The value estimated by this method, also known as income value or yield, equals the sum of all future net income, reported to the present time.
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