Posts Tagged Real Estate
”You compare properties that are similar to the property you are interested in to determine its value. We say it this way: “No Comps, No Contract.” Let’s look at an example. If you are trying to determine the value of a three-bedroom/two-bathroom, 1,600 square feet, attached two-car garage home, you’ll compare it to whatever similar [...]
You can find out the gross rent multiplier for your area by calling a commercial real estate company and asking them what it is for your city. If the gross annual rent is $120,000 and the gross rent multiplier for the area is 8, then we multiply $120,000 by 8 and come up with a [...]
There are three ways to value real estate. The three ways are the cost approach, the income approach, and the market comparison approach. When a real estate appraiser makes an appraisal, he or she will use one, two, or possibly all three of these valuation approaches.
There are six values all real estate investors need to know about property in which they are investing. These six values are the retail value, the wholesale value, the replacement value, the property tax value, the loan value, and the appraised value.
A real estate investor takes pride of ownership into account when negotiating with a homeowner, but pride of ownership does not figure into an objective valuation of property for the investor. Also, an investor is not caught up in the fear and greed of the real estate market. An investor does due diligence before investing.