Valuation From Past To Present

It is known that the first valuation activities date back to very early periods of history and it is thought that these activities probably emerged when people started to exchange their goods and properties. When the concept of value is analyzed, it is estimated that people may have first bargained with each other to determine the value of the goods and properties they exchanged.

However, the first valuation process in a more organized and professional manner was carried out by the Sumerians, dating back to 3000 BC. Sumerians developed units for measuring agricultural products and determined the value of these units. In this way, an accurate value could be used when agricultural products were exchanged.

Later, civilizations such as Ancient Egypt, Rome and Greece also used valuation. For example, in Ancient Egypt, the value of fertile lands formed as a result of the annual flooding of the NileRiver was determined. In Rome, a systematic was developed for the valuation of real estate and other assets.

In Egypt, the annual flooding of the Nile River caused the water level to rise and fertile soils to form. Therefore, there was an important need to measure the water level of the Nile River topredict the extent and timing of floods, and these predictions were very important for the planning and management of agriculture. In addition, the water level of the Nile was also used to determine tax rates. When the water level was high, tax rates were also raised as fertile lands yielded more crops. The occupation and management of agricultural lands in Egypt was implemented as a system under the control of the pharaoh. Those who owned fertile lands had to pay higher taxes to the state. Therefore, the measurement of the water level of the Nile River played a major role in determining the tax payment obligations of agricultural lands.

In Rome, real estate and other assets were valued by various methods. These included market value, rental value and income value methods. The market value method determines how much the property would be worth if it were sold. In this method, a value is determined by looking at the selling prices of other goods with similar characteristics. The rental value method is based on the evaluation of the rental income of the property. In this method, the rental income to be provided by the property is calculated and a value is determined by discounting the future rental flows to their present value. The income value method is the valuation of a property based on future income streams. In this method, the potential future revenues of the property are estimated and a value is determined by calculating the present value of these revenues. The valuation methods used in this period constitute the basis of the methods used today.

In Rome, apart from these methods, the value of some assets was determined by taking into account their historical or artistic value. For example, the value of antique artifacts or works of art was determined according to the sale prices and rarity of other artifacts with similar characteristics. Not only for real estate, but also for works of art and similar artifacts, today's foundations were laid during the Roman Empire.

For real estate, there are two different rights of use in Roman law, called "Usus" and "Abusus", which form the basis for today's versions of real estate ownership and utilization. Usus refers to a person's right to use the property, while abuses refer to the right to own the property. These rights are an important factor in determining the value of the property. The fact that a person has the right of usus enables him/her to have the authority to use the property, to benefit from its use and to exercise dominion over it. However, this person is not the owner of the property and cannot sell, pledge or transfer it to another person. The right of usufruct can only be given or sold by the owner of the property to another person for a certain period of time. The right of usufruct played an important role in issues such as land use and ownership, especially during the Roman Empire. It was also used in commercial and economic activities.

Abusus was used in Roman law as a term expressing the right to own a property. The person who has the right of abusus is the full owner of the property and has the authority to sell, transfer, pledge and dispose of it as he wishes. The right of abusus is the most comprehensive right of ownership and provides the highest degree of control that the owner can have. However, this right may also be subject to certain restrictions. For example, the transfer or sale of the property may be restricted by other laws or regulations or may be transferred for a certain period of time. The right of abusus is recognized as a fundamental principle of property in Roman law and is similarly used in today's legal systems.

The first official real estate valuation system was initiated in England in the 16th century. In this system, the value of the property for taxation is officially determined and recorded. This is considered to be a more objective and systematic valuation method and a similar system is used in many countries today.

In the 16th century, the first official property valuation in England was made during the reign of King Henry VI. In 1535, during the reign of Henry VIII, a document called "Valor Ecclesiasticus" was published. With this document, which was prepared to regulate the assets and revenues of the Church of England, a detailed inventory of church properties in England was made and the value of the properties was determined. The Church was one of the largest property owners in the entire country and its total holdings amounted to approximately 25% of the whole of England. Therefore, the accurate valuation of church properties was of great importance for tax collection and administration activities throughout the country.

Valor Ecclesiasticus was prepared using the standard valuation methods of the time. These methods included calculating the income of a property, assessing the location of the property and analysing the market prices of similar properties. In this respect, the document constitutes an example for modern real estate valuation activities.

A standardized valuation method in the modern sense was first developed towards the end of the 19th century. This method emerged with the increase in large-scale real estate valuation activities, especially in the United States of America.

In the United States, large-scale real estate appraisal has been and still is generally carried out by professional real estate appraisal companies. These companies consist of real estate appraisers and generally provide property valuation, consulting and other real estate related services.

A real estate valuation company uses a variety of methods to determine the value of a property. These include market surveys that assess the physical characteristics and location of the property, comparative property analyses, and financial analyses that help estimate the income potential of the property.

Large-scale property valuation generally refers to the valuation of commercial properties. Commercial real estate is real estate such as office buildings, retail stores, industrial facilities, hotels and other large-scale structures, many of which usually require large investments. Therefore, large- scale real estate valuation is often important for banks, investors and other property owners.

In the United States, large-scale real estate valuation is often overseen and guided by federal and state-level regulations. For example, the United States Department of Justice monitors the activities of real estate appraisal companies and initiates investigations when any irregularities or illegal activities are detected.

Today, valuation is used in many different sectors. In particular, professional valuation services are used for the valuation of large asset classes such as real estate, automotive and finance sectors. However, under the definition of real estate valuation, today, consultancy services are provided in many specific areas such as valuation of tangible fixed assets including machinery and equipment, all vehicles etc. together with real estates, project valuation studies, most efficient and best use analyses of real estates, market researches, project valuations and many other specific areas related to real estate.