Valuation . 6 min read . Published 2026-04-02 . Updated 2026-04-02
A practical framework to compare reserve price, local comparables, and risk-adjusted fair value before bidding.
Start with comparable market value
Use current local comparable transactions, property condition, and micro-location demand to estimate fair market value.
Apply risk adjustment
Adjust value for possession uncertainty, legal complexity, time-to-transfer, and liquidity risk.
- Higher uncertainty means lower bid cap.
- Time delays increase carrying costs.
- Low liquidity requires higher margin of safety.
Set bid rules before auction
Pre-commit to a maximum bid and increment discipline to avoid emotional over-bidding.
