Tip:
Highlight text to annotate it
X
Selecting comparable properties that are truly comparable to your home is essential to all
three approaches to value. For a property to be considered comparable it should include
similar features to your property and be competitive with it, in short, the comparable property
should appeal to many of the same market participants who would consider purchasing your property.
It should be located within your market area and ideally would have been sold recently.
Long Island Appraisal Comparable properties provide data that can
be applied in each of the three approaches to value. To gather data for the sales comparison
approach, your appraiser needs to identify improved properties that have been sold recently
and are comparable alternatives for your property.
To apply the cost approach the appraiser needs data on unimproved property, vacant parcels
that have been sold recently and are comparable to your site. The analysis of the comparable
land sales will indicate site value, the deprecated improvement costs are added to provide an
indication of value for the total property.
The income capitalization approach requires data on completive rental properties. These
properties must be identified to determine market rents and sales prices to derive a
gross rent multiplier. The income approach is not typically developed for single family
home unless they are rented investment properties; this approach is typically developed for multifamily
properties.