The discrepancy between appraised valuations and market prices is a cause for concern to valuers, investors, bankers, trustees, accountants, auditors, portfolio managers and regulators. Members of each group need to clarify how the potential costs of a discrepancy will effect them. Error metrics, relevant to the risk profile of interested parties, are illustrated as a means of quantifying the exposure to which each is subjected. Dialogue and discussion between interest groups is thought to be the best way of overcoming the apparent anomally.
- Commercial valuations
- Error metrics