There are numerous articles out there in the mainstream media ranging from the Wall Street Journal to Fortune Magazine stating that we are now in a completely different market compared with the past two years. The articles then go on to assert that we cannot rely on historic data for comparable sales because the market conditions have changed.
On today’s show we are asking the question about whether we truly are in a new housing economy?
What methods can we use to determine property value?
If you ask any appraiser, they will assert that the traditional method of valuing property looks at a trio of methods.
- Comparable sales
- Replacement cost
- Multiples of net income
Professional appraisers look at all three of these metrics and then decide which of the three should take precedence in the specific circumstances for a subject property.
———————
Host: Victor Menasce
email: [email protected]
