Comparative Market Analysis
There are a few different ways of evaluating real property. Each perspective has its strengths and weaknesses, which provide a valuation snapshot for a particular piece of real estate.
Appraisals are a formal analysis of a property based on the direct comparison of the subject property to the size and quality of the improvements, location and sales price of recently sold properties that have similar or related assets.
Replacement cost analysis looks at the existing improvements and calculates the present cost of replicating them, discounting for age and/or condition, and adding that figure to the present value of the land.
Market history analysis is a generalized approach for value assessment. Starting with the initial cost of the property; the base cost, and then multiplying that basis by the percentage with which the market changed (up or down) for each of the following years of ownership to the present date.
Market sales analysis compares the subject property to that of similar properties, which have recently sold. Considerations would include location, market segment, condition and purchase terms.
Income analysis of real property pertains mostly to commercial real estate and the cash flow that a property generates or the income potential represented.
Comparative market analysis takes into consideration some of all of these perspectives in addition to an interpretive factor regarding the uniqueness of the subject property and its perceived demand in the present market relative to buyer activity. A Realtor can provide you with a comparative market analysis. Experience and interpretive skills for market analysis will impact the results.
I would be glad to provide you with a complimentary comparative market analysis for your real estate investment in Southern Santa Barbara County. If you own property outside of this area or out of state I would be glad t refer you to a qualified Realtor in that area for a comparative market analysis.
Please include the following information in your e-mail: the property address, the assessor’s parcel number (APN), the parcel size, a general description of the improvements on site and your contact information.
This information should be enough to complete a general evaluation; a more accurate assessment would require a site visit. Please contact me to schedule an appointment for a more in depth analysis.
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