Real Estate Market Valuation is the process of developing an opinion of value for real property. Transaction on real estate often requires an appraisal because every property is unique, unlike corporate stocks, which are traded daily and are same. A property location also plays a key role in valuation, the property cannot change place, it is often the upgrades or improvements to the home that can change its value.
According to New York department of taxation and finance, market value is how much a property would sell for, under normal conditions, this excludes sales where the buyer or seller is under pressure to act, perhaps due to a career move, the death of a family member, or divorce. Real estate market valuation is basically an educated guess, but it can be fairly accurate if you apply the right method and consider all the important details.
An in-depth look at the core tools of a real estate market valuation will show you how to analyze the real estate market and assess the financial feasibility of a project. Though, many people go with their instincts or past experience when reviewing the financials and fail to use the user data and analytical tools available in this field. Get the analytical data and tools you need to assess the financial feasibility of any project.
Real Estate Market Valuation and Analysis Free Ebook Table of Contents
Preface: A Practical Approach.
Chapter 1: The Essence of Analysis.
Chapter 2: Using Analysis Effectively.
Chapter 3: Valuation of Real Estate.
Chapter 4: Single-Family Home and Condo Analysis.
Chapter 5: Multi-Unit Rental Property Analysis.
Chapter 6: Retail Real Estate Analysis.
Chapter 7: Office and Industrial Real Estate Analysis.
Chapter 8: Lodging and Tourism Industry Real Estate.
Chapter 9: Mixed-Use Real Estate Analysis. Download a copy of the Ebook in PDF format for free
Factors that determine a property market valuation
External characteristics – “curb appeal,” home condition, lot size, the popularity of an architectural style of property, water/sewage systems, sidewalk, paved road, etc.
Internal characteristics – size and number of rooms, construction quality, appliance condition, demonstrated “pride of ownership,” heating type, energy efficiency, etc.
Supply and demand – the number of homes for sale versus the number of buyers; how quickly the homes in your area sell.
Location – desirability for a particular school district, neighbourhood, etc. Read more
Estimation of a property value is very vital to determine the real estate financing, listing real estate for sale, investment analysis, property insurance and the taxation of real estate. For most people, determining the asking or purchase price of a property is the most useful application of real estate valuation.
The book by Joshua Kahr, the President of Kahr Real Estate Services, LLC, a consulting firm with specialization in the real estate market analysis, financial software training, and financial modelling is a fresh, insightful look at how real estate professionals actually value properties and analyze markets. The focus on different product types as well as market segments is especially useful.