There are many factors affecting real estate valuation. Economy, interest rates, unemployment, business growth, government programs are just a few of the handful of national factors that have a measurable impact on your property’s worth.
At Property Specialists Realty we utilize 3 basic approaches to valuing your properties:
The Market Data Approach, also known as the Sales Comparison approach to value. Sales of recently sold, similar properties are compared to your property in order to come to an accurate estimation of value.
The Income Approach to value allows property investors to accurately guess the value of a property based upon the income the property produces. Market Value aka Net Operating Income, or, take the Net Operating Income of the rent collected and divide it by the property investor’s rate of return to come to an accurate estimation of value.
The Cost Approach is when a potential investor of real estate will not, or should not pay more for a property than it would cost to build an identical property. Factoring in the cost of construction, minus depreciation, plus the land, gives a good indication of market value.
All of these approaches to value are market data approaches as the data inputs are derived from the market. PSR takes into consideration any intrinsic characteristics or circumstances related to the client property that may affect the value positively or negatively.
