VALUATION OF…
Forced Sales
Sales concluded under compulsion (e.g. execution or liquidation), valued at Market Value but reported with the forced-sale discount separately identified.
Content status: Methodology and evidence log — Sources, Caselaw and Market Information are added incrementally.
Methodology
A forced sale value is not a separate basis of value in itself but a reporting convention: the valuer first establishes Market Value using the approach appropriate to the property type, and then separately estimates the likely realisation under compulsion (e.g. a shortened marketing period, as in execution or liquidation), reflecting the discount a purchaser would typically require for the reduced exposure to the market.
The Big Five framework is applied in full to establish the underlying Market Value; the forced-sale discount itself is not derived from income analysis but from an assessment of marketing period, prevailing market liquidity for that asset class, and empirical evidence of discounts achieved on comparable forced sales (typically expressed as a percentage reduction from Market Value).
Because forced-sale evidence is asset- and market-specific, the discount applied should be supported by recent comparable forced-sale outcomes for similar property types where available, and clearly distinguished in the report from the underlying Market Value opinion.
Caselaw
Case law, regulatory rulings and expert-determination disputes relevant to valuing this asset class. Each entry cites its source and summarises the practice implication for valuers — this is not investment, financial, or legal advice.
The Evidence Log is for VDH Members
The Evidence Log for Forced Sales — sourced sales, disposals and rentals with Valuer’s Lens commentary — is included in VDH Membership: from R125/month for SACPVP candidates and students, R399/month standard. All prices include VAT.
The methodology and case law on this page remain free to read.