General Studies · Property Valuation Methods

Consider the following statements regarding valuation methods and legal adjustments for real estate assets: Statement 1: The Market Approach to valuation is the most preferred method for retail residential units because it relies on actual transaction evidence from the Open Market. Statement 2: When applying the Income Capitalization Method, the Capitalization Rate should ideally be derived from the market by analyzing the net income and sale prices of similar recently sold properties. Statement 3: In the valuation of land, the Belting Method is used to account for the fact that the front portion of a plot facing the main road has a higher value than the rear portion. Statement 4: A Valuer's Liability is limited only to the person who commissioned the report (the bank) and cannot be extended to third parties like the borrower under any legal circumstance. Statement 5: The Plottage or Assemblage premium refers to the increase in value that occurs when several small contiguous plots are joined together to form one large plot with greater development potential. Statement 6: For a property located in a Cantonment Area or on Leasehold Land from a Government Authority, the valuer must deduct the Lessor's interest and the cost of future lease renewals from the total market value. Statement 7: Depreciation in property valuation is always a negative factor, and it is impossible for an old building to have a higher value than a brand new building of the same specifications in the same locality. Which statements correctly describe these specialized adjustments and legal aspects of property valuation?