Real Estate Evaluation, Valuation Approaches

The main value of real estate appraisal is the solution to invest money in commercial real estate performance is evaluated. At this time, one of the most popular types of evaluation is namely assessment of the property, which includes the valuation of property rights or other rights. But an independent assessment of the property is, in essence, the calculation of its real market value. Appraisers usually offer services to assess commercial real estate a few basic types. Thus, one can evaluate the real estate, commercial and office real estate appraisal, evaluation of commercial real estate warehousing, evaluation industrial real estate and other real estate.

In the process of determining the property value is taken into account the amount of income, risk and time associated with his receipt. Also, market assessment of income property takes into account many other factors influencing the ability of commercial property, which estimate is carried out to generate income. The same estimate is based on three core real estate approaches: cost, revenue and comparative. Carrying out an assessment of commercial real estate, property analysis, property location, surrounding commercial property, the appraiser determines the specific market real estate values, an assessment which he conducts. For the evaluation of the commercial real estate appraiser uses a variety of assessment approaches within each of which there are many of their original methods of assessment. Generally there are three main approaches to the assessment of income real estate: cost, comparison (market) and yield. Costly method of assessing real estate answers the question: how many today is to construct the building in the commercial real estate? A comparative approach to determining the market value of commercial property accounts, at what price would be sold at any given time the object real estate, determine the market value of which is produced. In the framework of the income approach to property valuation is mainly considered a potential revenue that could bring its owners object real estate, determine the market value of which is made in this case.

In the case of assessment of commercial real estate has the basic meaning the income approach. Services appraiser can not be avoided in many cases. In fact, professional real estate appraisal is a necessity for any real estate transaction. A report on real estate appraisal is an official document required for obtaining a loan and the organization company. We emphasize that the market valuation of commercial property may make only a professional appraiser.