Incorporating Risk And Uncertainty Into Real Estate Valuation And Investment Appraisal

CHAPTER ONE  INTRODUCTION 1.0       Background to the Study  Valuation is the process of estimating price in the market place. Such estimation will be affected by uncertainties. Uncertainty in the comparable information available; uncertainty in the current and future market conditions and uncertainty in the specific inputs for the subject property. These input uncertainties will translate into an uncertainty with the output figure, the valuation (French, 2007).The terms ‘‘development valuation’’ or ‘‘development appraisal’’ refers to professional studies to determine the feasibility and viabi…