Pre-sale values increased for market movements when calculating gross realisations
A gross realisation value is sometimes needed as a starting point for property valuations. Pre-sales, for example, commit the owner to a sale at an agreed price, with ownership passing at a later date, generally when the development is completed. In determining a gross realisation value, where pre-sales exist as at the valuation date, valuers should use the pre-sale prices, rather than a value which takes into account market fluctuations.
Pre-sales and off-the-plan sales will define the property value and deny any market appreciation, or devaluation, and impacts on the value of property between the contract date and the valuation date.