Navigating Uncharted Valuation Waters: What If Comparable Evidence Is Scarce?

Reasons for a lack of evidence can arise due to a variety of factors, such as:

• Inactive Market with Minimal Transactions:

In this scenario, the market experiences limited activity, resulting in sparse transaction data.

• Highly Dynamic and Rapidly Changing Market:

In an active market that evolves swiftly, comparable evidence can become outdated quickly.

Transparency Challenges in the Local Market:

Some local markets lack transparency, making it difficult to access reliable data.

4-Properties may be unusual in terms of their construction, use, location, or other factors.

It is also worth highlighting that the lack of evidence shouldn’t prevent the valuation from being undertaken. (LACK OF EVIDENCE DOSE NOT MEAN TO REJECT VALUATION)

Here, the expertise and judgment of the valuer play a very important role. It may be necessary to consider more indirect evidence, such as local or national economic data.

The use of international comparables may be applicable in certain cases, However, significant adjustments should be made to account for differences in location, market dynamics, currency exchange rates, and other local factors. These adjustments can be complex and may introduce a high degree of uncertainty.

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