Comparison Method - Preference Of Adjustment Techniques Among Valuers

Abstract

This paper discusses the adjustment techniques applied by valuers in determining the market value of the property. There are several types of adjustment techniques that can be applied in comparison method such as summative pecentage, dollar percentage, add and/or subtract percentage, and proper base adjustments. In order to investigate the most preferred adjustment techniques applied by valuers in Malaysia as well as the elements of adjustment, a questionnaire survey is conducted that involves valuers from government and private sectors as respondents. The research reveals that the most preferred adjustment technique among valuers in Malaysia is the summative percentage method with the sequence of adjustment based on the ranking order of tenure, date of transaction, location, physical characteristics, economic, land use and zoning, quantum, topography, and financial terms. This study benefits the profession of real estate especially to practising valuers in Malaysia.

Keywords: Comparison method, adjustment techniques, adjustment elements.