MARKET & COST APPROACH IN VALUATION CHAPTERS 3 & 4
Types of Market
There are three types of real estate markets you can find yourself in locally:
a buyer’s market,
a seller’s market,
or a balanced market.
The exact market you’re in should inform your approach as you choose investments, make offers, and negotiate deals.
Here’s what these markets look like:
Buyer’s market
A buyer’s market is one in which there are more properties for sale than there are buyers.
This means home buyers have the upper hand……..
Cost Approach to Value – Methods of Cost Estimates for Buildings –
Life of Building: Economic/Physical/Legal –
Factors affecting life of the building –
Total Life, Age, Estimating Future Life –
Various methods of Computation of Depreciation,
Functional, Technological and Economic Obsolescence –
Reproduction Cost/Replacement cost,
Depreciated Replacement Cost (DRC) working, adopting DRC as Value subject to Demand
and Supply aspect –
Land Value by Market Approach and Building Value by Cost Estimation Method for
Owner Occupied Bungalows, Factories, Public Buildings….
CLICK THE BELOW LINK TO READ THE COMPLETE CONTENTS
Please wait while flipbook is loading. For more related info, FAQs and issues please refer to DearFlip WordPress Flipbook Plugin Help documentation.
SOME CONTENT OF THIS WEBSITE ARE FOR GOLD SUBSCRIBERS ONLY.
Join us as a GOLD SUBSCRIBER and get access to read important books.