What are the most common appraisal methods?
Comparative appraisal: How does your property compare to similar properties that have recently sold? No two properties are identical, but sale prices of properties like yours are relevant data points for what yours is worth. • Advantages: Easy and fast. • Disadvantages: Reliable information about market transactions is not always available. Residual appraisal: This technique subtracts the building costs and profits of a proposed development to arrive at the net land value associated with the expected financial benefits of a development. • Advantages: This technique doesn’t require finding comparable transactions, and it links the maximum value of a lot to the financial expectations of the project • Disadvantages: Small changes in individual parameters or assumptions can generate significant changes in the result of the appraisal, so you’ll want to model numerous scenarios to understand the impact of different variables. OK…so where do I go from here? Now that you know a bit about how
