Valuation as Research: A Defensible Approach

Abstract

Valuation is a process intended to address specific inquiries concerning the value of real property. It entails market research. Although the final estimated value, expressed in monetary terms, holds importance, its validity cannot be assured unless the methodology is credible and reliable. Given that valuation is not a pure science, the term ‘defensible valuation’ is more appropriate  than ‘accurate valuation.’ Therefore, defensible valuation centers on the robustness and integrity of the valuation process itself. This paper aims to refine the valuation process to enhance its robustness. Disciplinary literature was critically reviewed and complemented by expert consultations to identify key themes. These themes were then systematically mapped onto the current valuation practices to uncover potential areas for enhancement. A framework is derived as a defensible valuation process with high robustness and integrity