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VALUATION OF REAL PROPERTY
What is the primary purpose of real property valuation in banking?
Real property valuation determines the fair market value of immovable assets used as collateral for loans, ensuring the bank's security interest is adequately protected against credit exposure.
What is 'Distress Value' of a property in banking context?
Value at which property must be quickly sold under duress
Which method of property valuation estimates value based on the income the property generates?
The Income Capitalisation Method (also called the Investment Method) estimates property value by capitalising the net annual income at an appropriate yield rate reflecting market risk.
What is 'Market Rent' in the context of property valuation?
Estimated rent a property would fetch in open market
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