The Five Methods, 2nd Edition
Routledge – 2008 – 198 pages
Completely revised to incorporate recent developments in practice, this second edition of Douglas Scarrett’s established text describes the process of valuation of real estate through its five principal methods: comparative, investment, residual, profits and contractor’s methods.
Unlike most existing texts, the book is designed to allow students to read about the methods either chapter-by-chapter or as a whole, thus enabling a deeper understanding of each in its own right as well as how they fit together. Discussing changes in retail practice and the role of accountants in looking at viability of businesses, the book features new case studies, enhanced visual aids, diagrams and tables to help readers visualize the process.
It is essential reading for those studying property valuation, in addition to practitioners who will find useful guidance to underpin their practice.
1. Setting the Scene 2. The Overall Investment Market 3. The Property Market 4. Valuation Mathematics 5. The Determinant of Value 6. The Comparison Method 7. The Investment Method 8. The Residual Method – The Problem 9. The Residual Method – The Process 10. The Profits Principle 11. The Profits Principle – Trading Accounts and Definitions 12. The Contractor's Test 13. The Contractor's Test – Application. Appendix. Further Reading
Douglas Scarrett is now retired from his last post as Director of Estate Management at De Montfort University where he was previously Deputy Head of the School of Land and Building Studies. He entered the educational field after extensive professional experience in commercial and government organisations and as an equity partner in an old established firm.
He was joint founding editor of the Journal of Property Management and has been an external tutor for the College of Estate Management for the past 25 years.