Valuation & Finance

Market value vs. price vs. cost

Market value is the most probable price a property should bring in a competitive, open market under fair conditions. Pri

Appraisal defined

An appraisal is an unbiased estimate or opinion of value of a property as of a specific date, prepared by a licensed or

Sales comparison approach

The sales comparison (market data) approach estimates value by comparing the subject to recently sold similar properties

Cost approach

The cost approach estimates value as land value plus the cost to reproduce or replace improvements, minus accrued deprec

Income approach and GRM

The income approach values income property by capitalizing net operating income: Value = NOI ÷ capitalization rate. The