How do I evaluate the value of my property?
Value of the property = building value + land value
The land value is calculated using the comparative method. This method identifies the value of similar land in the same area using market trends to extrapolate the land value in question.
What are the three types of approaches to valuing real estate?
- Cost Approach to Value. In the cost approach to value, the cost to acquire the land plus the cost of the improvements minus any accrued depreciation equals value.
- Sales Comparison Approach to Value.
- Income Approach to Value.
What are the 5 methods of valuation RICS?
The evidence is used to formulate an opinion on value. There are five main methods used when conducting a property valuation whether it be a farm, land, a residential property or a business. The five methods are; the comparable method, profits, residual, contractors and the investment method.