Land and factories are industrial sectors designed with specific objectives according to the form of the product and manufacture. Moreover, the appearance and structure of each factory will not be quite similar even though they are in the same industry. The most important factors when it comes to the factory are load design, roof height structure, the appropriate arrangement of the layout, machinery and production lines. On the other hand, for the function of the service section in terms of production lines which can be either a separate building or even part of the main factory, the management with regard to the production support functions such as wastewater, emissions, and pollution management must be considered from the location of the division function. Therefore, the ‘Cost Approach’ seems to be the most suitable valuation method for summarizing the value. However, the ‘Market Approach’ should also be used for reviewing the summarized value by comparing the information with the other factories in the same industry together with a concept to always keep in mind that ‘production in the same industry requires the same or similar sources or raw materials and labors to ensure that the quality and quantity of the products are in demand and competitive. Therefore, the competition in terms of cost control per ton per unit that are similar will lead to the procurement of land, buildings & machinery must be under good competition as it will be interesting in the market. However, please note that another factor to take into consideration for the factory valuation is when the factory will be transformed into another form of utilization. Factory valuation may also include machinery valuation depending on the appraisal scope.
In this property valuation, these are all the documents that are needed: