How Valuation Is Done?

As I am building graduate and still in learning stage in property field, I start learning giving Verbal Indication to the bank. Below is an example on how valuers calculate the value of terrace houses.

Assume that this is a corner and basic (no renovation) unit.

Subject property:
-Land Area: 2,600 sf

Based on the latest transaction, a standard terrace house at the similar area is sold at RM280,000 with build-up 1,400 sf. Let assume the property is medium-cost property. Medium cost property will cost RM65-70 psf.

Building:
Main Floor Area: 1,200 sf x 70 = RM84,000
Ancillary Floor Area: 200 sf X 35(half of 70) = RM7,000
Total = RM91,000

RM280,000 - RM91,000 = RM189,000
RM189,000 is the value of the land the property on.
RM189,000/1,400psf (land) = RM135 psf

Land:
Standard Land: RM135psf x 1,400 sf = RM189,000
Extra Land: RM67.5psf (half of RM135psf) X 1,200 sf (2,600 sf - 1,400 sf) = RM81,000
Total = RM270,000

Corner Allowance:
RM270,000 X 10% = RM 27,000
RM27,000 + RM270,000 = RM297,000
RM287,000 adds building cost,RM91,000 = RM388,000

I hope you can get a good picture with the calculation.