Posted by Paul on August 12, 2003 at 15:11:13:
Find at least 3-4 sales of similar 3-units apartments in similar locations and compare them to the one you are interested in. First - Calculate the price per sq. ft. of each sale, take the range and apply to your property. Second - if you can get the gross income information from the sales (call the realtors involved), calculate the gross income multiplier (price divided by gross income) and apply the range to your property. Third - pay someone else to do your work and call an appraiser and tell them you want an inexpensive no-frills “limited” appraisal not for financing but to help you determine the price to buy it. Appraisers have easy access to sales and income data, which may be too time consuming for you. You’ll have something in writing from a professional that will help in your negotiations with the seller.