Posted by Marc in PDX on January 17, 2001 at 12:09:07:
> In the real world, you get an option on it, market
> the heck out of it, and when you get an acceptable
> offer, you’ve determined it’s worth.
The reason we’re not rich is because we don’t think like Joe!
how to determine the value of income property - Posted by tom
Posted by tom on January 16, 2001 at 20:20:40:
Besides using a cma how else can a property be valued? Thanks.
What they teach you in school or real world value? - Posted by JoeKaiser
Posted by JoeKaiser on January 17, 2001 at 09:01:12:
In real estate school you’d use the income method or replacement value method or the comparable sales method or more likely, a combination of all three.
Riiiiiiiight.
In the real world, you get an option on it, market the heck out of it, and when you get an acceptable offer, you’ve determined it’s worth.
Joe
Can use income capitalization… - Posted by Rolfe Kurtyka
Posted by Rolfe Kurtyka on January 16, 2001 at 23:07:45:
Tom;
Typically, when considering 1-4 unit residential or small commercial buildins, a comparitive market analysis holds sway. For larger multi-unit residential or commercial properties, market derived cap rates are commonly used to estimate value, or, if an investor desires a certain cap rate, to determine what offer an investor might present for a given property. To determine cap rates, investors, bankers, lenders, appraisers, and brokers compare historical investment property incomes (NOI)to known market values. The capitalization Rate = NOI divided by Value. Once the rate for a particular market and property type is known, that same rate can be applied to a similar property’s NOI to estimate value (Value = NOI / Cap Rate).
Good Luck! Rolfe