Economics Behind Real Estate Values
Due to the recent recession, and the introduction of new technologies, the business of real estate and the processes of real estate valuation are changing. Read the Forbes article, “Landlord, Inc.” Based on the content presented in the article, describe how innovative changes in real estate sales and rental markets are affecting valuations. What entrepreneurial role is Wall Street playing in changing the way real estate is valued and sold? What are the factors most affecting the changing values in real estate?
- What are the three approaches to value and how are they used in appraisal?
- Describe the type of data that is needed for each approach.
- What is the relationship between the data collected by the appraiser and the selected approach to value?
- Why do you think appraisers typically chose one approach for a specific property?