Appraisal Approach refers to one of the three primary methods used to estimate the value of a property. The three key appraisal methods include the Cost Approach, Income Approach, and Sales Comparison Approach. Each methodology evaluates different aspects of the property to determine its fair market value.
The final value estimate is the appraiser’s concluded value of a real estate property, determined after reconciling values from different appraisal approaches such as cost, sales comparison, and income.
The Income Approach is one of three methods used to appraise real estate value, primarily utilized for properties that generate consistent income, such as apartments, office buildings, hotels, and shopping centers.
The Land Residual Technique is a method used in real estate appraisal to estimate the value of land by using the net operating income (NOI) and the value and return of improvements on the property. It is especially useful for feasibility analysis and determining the highest and best use of a property.
The Property Residual Technique in appraisal is a method used to estimate the value of a property based on its potential future income and the reversionary value of the building and land.
Reconciliation in appraisal involves analyzing values from different valuation approaches to arrive at a final estimate of a property's market value.
A special-purpose property is a building with unique features and limited uses, making its marketability niche-driven. Examples include churches, theaters, schools, or public utilities.
Split-Rate Capitalization is a technique in real estate appraisal to estimate property value by using different capitalization rates for different periods, typically to account for varying degrees of risk and return over time.
The valuation process is a systematic method used by appraisers to derive an estimate of the value of a property, essential for making informed real estate transactions.
