Confidential valuation secrets top brokers swear by now

Key Valuation Methods Used by Brokers

Brokers rely on several valuation methods to determine property values. The most common approaches include:

• Comparative Market Analysis (CMA): This method involves comparing similar properties that have recently sold in the same area to estimate a property's value. It is one of the quickest ways to gauge market trends and set competitive prices.
• Income Approach: Primarily used for commercial properties, this method calculates value based on the income generated by the property. It considers net operating income and capitalization rates to determine potential investment returns.
• Cost Approach: This approach estimates the value of a property by calculating the cost to replace or reproduce the structure, minus depreciation, and adding the land value.

Each method has its strengths and is chosen based on the property's characteristics and market conditions.