Have you ever really wondered exactly what your property is worth? Do you just guesstimate the value? Well, here are some snippets from a great post I’d like to share with you today that really helps in this area of determining exactly what your property is worth! I hope you enjoy it as much as I did!
There are essentially three main methods of determining value. They are:
The CMA method
The CMA (Comparable Market Analysis) method is based on what similar or comparable properties have sold for in the past, typically within the last three months.
The Income Approach
The Income Approach method of valuation puts a value on the income generated from the property. This is the valuation method investors use most when evaluating an income property.
The Replacement Cost
The Replacement Cost method of valuation is simply what it would cost to buy the land today and build a new building with the same square footage with similar features.
You can read the entire post here.
If you’d like help with this, please don’t hesitate to get in touch with me any time at 604-882-6901.
Michael Ponte, President & Founder
Prosperity Real Estate Investments