1. Valuations, Methods, Importance Presented by: Mark Farrell G.A. Farrell & Associates Limited

2. Why Value? The First Question is - The Value of What? Real Estate

3. Why Value? Several Different Types of Value Several Different Standpoints e.g. your Home

4. Value As Seen By - Yourself

5. Value As Seen By - Buyer

6. Value As Seen By - Bank

7. Value As Seen By - Valuer

8. Value As Seen By – Tax Assessor

9. Assessed Value

10. Going-Concern Value

11. Insurance Value

12. Liquidation Value, Salvage Value MARKET VALUE

13. Market Value The estimated amount for which a property should exchange on the date of valuation – between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing

14. Market Value Wherein the parties had each acted knowledgeably prudently and without compulsion

15. Valuation Methodology How do Valuers arrive at Value? Most Common - Sales Comparison Approach

17. Often hear comments like: Market Is Inflated Actual Costs Are Less It Is NOT Real Value

18. Sales Comparison Approach

19. Cost Approach

20. Used For Special-Purpose Properties – (Brewery, Church, Hospital) In other Words, Properties that do not sell often Replacement Cost less Depreciation

21. Is Building Adequately Insured? Construction costs increasing again Imperative to check building Insurance Failure = Financial Hardship

22. Are Buildings Adequately Insured? Sum Insured (S.I.)$1,000,000 Current Replacement Cost$1,500,000 Damage $600,000 Percentage of CRC 40% Insurance Proceeds $400,000 Shortfall $200,000

23. Income Approach

24. Who is a Typical Buyer? An Investor What is Primary Concern? INCOME!

25. Income Approach Not Primarily Concerned With - Cost of Building a Substitute Selling Price of a Substitute Significant Differences in Commercial Properties Rent less Expenses Convert into Value

26. Valuation Methodology Important Ingredients: Analytical Skills Objectivity & Impartiality INFORMATION!

27. Why Value? What is Importance of Value? Bank – In case of Default Insurance Company - In case of Damage You - In case of Purchasing / Selling

28. Why Value? What is Importance of Value? Investors - In case of Measuring Return Values Change Over Time

29. Price Movements 1973-2013

30. Achieving Success Research shows to achieve Success – Need Proper Mentor. Some people choose – Intelligent people Good-looking people Sporting or singing stars.

31. Achieving Success Choice affects chances of success! Psychologists have designed several tests and quizzes Contain numbers and personalities Actually shows chances of Success Allow me to try on of the quizzes and we will see if it is of benefit to you, ok? Remember however, I am NOT a Psychologist!

32. Achieving Success: Pick a number from 1-9......... Times this number by 3......... Then add 3........................ Then times by 3 again........... You should have a two digit number.... Add these two numbers together..... You then should be left with a single digit number which will tell you who your all time FAVORITE PERSON is....

33. That is… 1. George Clooney 2. President Obama 3. Bob Marley 4. Russell Latapy 5. Dwight Yorke 6. Nelson Mandela 7. John Lennon 8. Brian Lara 9. Mark Farrell 10. Mighty Sparrow

34. THANK YOU! ANY QUESTIONS?