An opinion of value is a deeply individual assessment, intricately woven with personal perspectives and circumstances. It stands as a testament to the inherently subjective nature of value, which can vary significantly from person to person and situation to situation. Factors such as emotional attachment, practical needs, and future aspirations all play pivotal roles in shaping one’s perception of value.
The subjectivity of value becomes especially apparent when considering the diverse array of reasons for evaluation and the desired outcomes thereof. Whether assessing a property for investment purposes, insurance coverage, or personal sentiment, the context surrounding the evaluation profoundly influences the perceived value. What may be deemed valuable in one scenario could hold significantly less significance in another, highlighting the contextual nature of value determination.
Despite this inherent subjectivity, an opinion of value draws upon a structured framework, much like an appraisal, to provide a comprehensive assessment. While not every minutia of detail included in a formal appraisal may be present, the fundamental components that underpin value determination are invariably incorporated. These components may include factors such as market analysis, property condition, comparable sales data, and economic trends, among others.
To streamline the process of value analysis, individuals often rely on established templates or methodologies tailored to specific contexts. These templates serve as invaluable tools, offering structured guidelines to follow when conducting evaluations. By adhering to a standardized approach, evaluators can ensure consistency and accuracy in their assessments, regardless of the intricacies involved.
While the concept of value remains inherently subjective, the process of forming an opinion of value is grounded in structured analysis and methodology. By understanding and navigating the multifaceted nature of value, individuals can effectively evaluate assets and make informed decisions that align with their unique objectives and circumstances.
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Physically you are looking for any upside or potential downside and with some expertise, you will apply any upside and/or downside to your final number. The number crunching becomes highly organized when you develop a few templates for mandatory information. The Excel sample below for Enbridge is a simple format that tells you month by month the gas consumption for the past twenty-four billing cycles (current). Viewing the expense in a spreadsheet month by month will indicate any abnormities that may be a red flag identifying a problem or potential upside.
SAMPLE- 24 month billing cycle up to date of agreement of purchase and sale
ENBRIDGE
Property Address
| Current past 24 months up to March 15, 2022 | ||||
| PERIOD BILLED | ||||
| March 18, 2020 – April 16, 2020 | $440.73 | |||
| April 16, 2020 – May 19, 2020 | $253.27 | |||
| April 16, 2020 – June 16, 2020 | $256.21 | |||
| June 16, 2020 – July 16, 2020 | $135.52 | |||
| June 16, 2020 – August 18, 2020 | $113.08 | |||
| August 19, 2020 – September 17, 2020 | $82.83 | |||
| September 18, 2020 – October 19, 2020 | $177.69 | |||
| October 20, 2020 – November 16, 2020 | $292.10 | |||
| November 17, 2020 – December 15, 2020 | $296.07 | |||
| December 16, 2020 – January 14, 2021 | $636.57 | |||
| January 15, 2021 – February 12, 2021 | $628.78 | |||
| February 13, 2021 – March 15, 2021 | $441.10 | |||
| TOTAL | $3,753.95 | |||
| March 16, 2021 – April 14, 2021 | $229.18 | |||
| April 15, 2021 – May 13, 2021 | $298.54 | |||
| April 15, 2021 – June 14, 2021 | $266.09 | |||
| June 15, 20121- July 14, 2021 | $112.28 | |||
| June 15, 2021 – August 12, 2021 | $123.92 | |||
| August 13, 2021 – September 14, 2021 | $112.83 | |||
| September 15, 2021 – October 14, 2021 | $101.47 | |||
| October 14, 2021 – November 12, 2021 | $329.87 | |||
| November 13, 2021 – December 14, 2021 | $520.77 | |||
| December 14, 2021 – January 17, 2021 | $704.60 | |||
| January 18, 2022 – February 14, 2022 | $662.93 | |||
| February 15, 2022 – March 15, 2022 | $420.90 | |||
| TOTAL | $3,883.38 |