Various Methods of Property Appraisals
As stated, the different methods that are used during the process of property valuation males. These are described briefly below:
• Comparison method used to analyze the recent transactions of similar properties available in the market. It is usually used when there is enough of the last transaction occurs, which helps to demonstrate the value of the property.
Adjustments must be made in accordance with the value of certain factors such as expenditures made after purchase, location and physical characteristics as well.
• The method compares the rental income is usually the same property. There are many companies which provide pullman residences floor plans.
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This method involves estimating the present value and future value as well and depending on future benefits. It includes facilities such as supermarkets, shopping centers, a new MRT station.
• The cost method based on the theory that people will not pay more for an older building than it cost to build a replacement property that offers the same functionality and utilities. It is used to evaluate the property with little or no market transactions such as schools and churches.
• Earnings method was also used during Parramatta property valuation. It is used for the assessment of properties with potential trade and no one was there last market rents for similar properties.
We can get the amount of profit by reducing the purchase of the estimated amount of revenue, which is divided into two parts for the tenant and the owner. With income tenants, we can find the capital value of the property.