market property - What Is My market property Worth?

Atlanta - market property - What Is My market property Worth?

Good morning. Today, I learned about Atlanta - market property - What Is My market property Worth?. Which may be very helpful for me and also you. market property - What Is My market property Worth?

As a property investment company, which offers its clients a full estate agency service that is backed by professional advice and personal attention, we are often called upon to retort questions like ...

What I said. It isn't the actual final outcome that the true about Atlanta . You read this article for facts about that wish to know is Atlanta .

Atlanta

"What is my market property worth?"

This is by no means an easy inquire to retort and to be perfectly honest it's only worth what person is willing to pay. Having said this, we do however use a estimate of basic formulas so as to imagine the value of market property.

The first method

We will portion the land and conclude the quadrate meterage. We will then conclude the market value per quadrate meter which is dependent on the area in question. We then multiply the quadrate meterage by the price per quadrate meter. This will give us a rough indication of the value of the land. The price per quadrate meter regularly decreases as the size of the land increases. The price per quadrate meter will also be affected by factors such as the proximity to road and rail networks as well as by shop frontage, foot traffic and so on ...

After we have evaluated the land, we will evaluate the improvements such as the height, size and normal health of the buildings. It is regularly quiet straightforward to conclude the transfer value of the facilities by keeping your finger on the local building costs. You can then collate the price of new build and marginally reduction the price depending on the current state of the buildings. The ratio in the middle of the cost of new build and existing stock will vary depending on a estimate of economic factors. These factors are cyclical in nature but can be thought about by an comprehension of where in the property cycle we are at. (This will however unfortunately go beyond the scope of this article.) Finally, if you then add the value of the improvements to the value of the land, you will have the results of the first method.

The second method

This is more often than not the beloved recipe of evaluating what market property is worth. It is also favoured by the vast majority of property investors. Using this method, we will simply evaluate the rental yield that the property can produce. The rule is simple: the higher the rent, the higher the value of the property. What most investors do, when contemplating their acquisitions, is to divide the annual rent that they will receive by the buy price that they will have to pay. They will then collate one property with the next and will regularly conclude on the one that offers them the higher yield.

They will however also take into catalogue the drive of the tenancy agreements. If they are buying A-Grade office space with a Blue Chip tenant, a long term lease and favourable escalation clauses they will regularly accept a lower yield as there is less risk to worry about. If however there are any concerns as to the integrity of the tenant, or if the lease is about to expire, then the inherent risk increases. The only way to compensate for increased risk and inherent void periods is to lower the buy price and offer a higher yield.

The third method

This involves a healthy mix of the above two mentioned methods. Firstly we will evaluate the yields, this being the easiest recipe to collate apples with apples. We will then reduction or add on to the value depending on the drive of the tenant and their lease agreement. Ultimately we will take a look at the value of the land and add to that the value of the improvements. That way, regardless of how the tenancy runs we will at least know that there is good value in the corporeal asset.

Having demonstrated to you the various methods of evaluating market property, please remember that at the end of the day, these methods and formulas only serve as a guideline. We all the time suggest our clients that we can evaluation the value but that only the market will conclude the true selling price. market property, like all property, is only worth what a willing buyer is ready to pay for it!

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