Residual method of property valuation

Abstract

In the paper the residual method as one of the methods used for property valuation by mixed approach is presented. The paper contains the description of the most often used applications of the residual method and two examples of the practical usage of this method. The first example relates to the valuation of a family house being built for the purpose of obtaining a mortage loan to complete construction work. The second example concerns the valuation of an office building considered for purchasing by a potential buyer. The paper ends with the conclusions concerning the conditions of property valuation.