The assessment of worth: the need for standards

Buy/sell decisions in the property market, as in most markets, are based on individual or professional opinions that the exchange price is below or above the individual’s opinion of worth. This article considers the RICS definition of worth and explores other definitions and meanings in the property investment market. It reviews the current provision for DCF in standards or information papers and concludes that, while the International Valuation Standard Committee’s definition of market value is now recognised on a world basis, confusion over the meaning of “worth” and the use of DCF will continue if similar international standards are not agreed.