Monthly Archives: September 2013

Annual Gross Income Multipliers Demonstrated

A list of 56 sales of apartment houses showing gross income multipliers arranged by intervals of 1.0. Note that the two intervals 5.00 to 5.99 and 6.00 to 6.99 have the greatest number of cases among the intervals. The median gross income multiplier is 6.04. The variation in gross income is accounted for by differences […]

More on Sales Adjustments

There is some practical limit to the number of adjustments that may be made. A practical limit would be six characteristics that are subject to sales adjustments. As the number of adjustments increases, the sale gradually loses the required degree of comparability. To cite an extreme example, you would not use the sale of a […]

Comparable Sales Presentation

The importance of the data source is suggested by the detail required for each comparable sale. Usually it is unlikely that all this in-formation will be secured from a single source. For example, the appraiser may identify a prospective comparable sale from the local property tax records. Typically additional sales information must be obtained by […]

Advantages of the Market Comparison Approach

Appraisers may compensate for some of the deficiencies of sales data on the basis of their general familiarity with real estate values. Provided that real estate sales meet minimum standards of acceptance, they offer a fairly objective means of estimating value. In fact, the advantages of the market comparison approach frequently more than compensate for […]