Markkinaarvomenetelmät

Markkinaarvomenetelmät, known in English as market value methods, are a group of valuation techniques used to determine the probable price that a property or asset would command on the open market. These methods are primarily based on the principle of substitution, which suggests that a buyer will not pay more for a property than they would for a similar property with equivalent utility.

The most common market value method is the sales comparison approach. This involves analyzing recent sales of comparable properties in the same or a similar market. Adjustments are made to the sale prices of the comparables to account for differences in features, condition, location, and other relevant factors compared to the subject property. The adjusted prices are then used to estimate the market value of the property in question.

Another related concept is the income capitalization approach, which is used for income-producing properties. This method estimates value based on the property's ability to generate income. It involves converting anticipated future income streams into a present value, often using capitalization rates or discount rates derived from market data.

In practice, valuers often use multiple methods to arrive at a final opinion of market value. The selection of the most appropriate method or combination of methods depends on the type of property, the availability of data, and the purpose of the valuation. Market value is generally understood as the price at which a willing buyer and a willing seller, both acting knowledgeably and without undue pressure, would transact.