Valuation is the art of finding the value of something of economic value. It can be machinery and equipment, real estate, business value and other aspects related to value. For example, you need the insurable value of an expensive piece of equipment that is essential for your manufacturing plant. Similarly, buildings, especially commercial buildings requires insurance value and coverage before the bank would grant you a mortgage. A bank may want the liquidation value of a piece of equipment to determine how much it would lend on personal property. Fair market value (FMV) is the most common value required for lending and court purposes. However, FMV are point-in-time estimates that change with the market. A significant change in demand or supply, changes in governing policies that affect values mean than FMV must be updated from time to time to be relevant and accurate.
Anyone can render an opinion of value. However, a professionally trained and accredited person who abides by strict professional ethics and have sufficient experience would be able to support an opinion with evidence that stand up to scrutiny in the court of law. For important matters, it is prudent to call upon an accredited valuer. We recommend the services of accredited members of the Appraisal Institute of Canada.
Anyone can render an opinion of value. However, a professionally trained and accredited person who abides by strict professional ethics and have sufficient experience would be able to support an opinion with evidence that stand up to scrutiny in the court of law. For important matters, it is prudent to call upon an accredited valuer. We recommend the services of accredited members of the Appraisal Institute of Canada.