RE-160 Lecture 29: Real Estate Principles - 29
18 Dec 2020
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Document Summary
Prices of similar goods in the market are the best indication of the value of any good (i. e. , the principle of substitution) Compare 3-6 recently sold properties to the subject property and make adjustments. Reconcile the value estimate from this approach. Characteristics of properties and transactions that cause price to vary. Proximity location - . 5 mile if possible. Non real property components of price legal characteristics (zoning, leases) Characteristics of properties and transactions that cause price to vary (red items are important) Basis of the cost approach the cost of purchasing a similar vacant site, constructing new infrastructure, and a new building provides an indication of the value of an existing site and building. Estimate the value of the site as if vacant. Zoning <> access <> terrain <> utilities. Estimate the production cost of the site and building improvements (site and structures) Cost of similar structures per sq. ft. without looking at separate components.
