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Real Estate Appraising – Download Real Estate Financial Model Templates in Excel
by Jason Varner Financial Projections TemplateReal estate appraising is the process of estimating the market value of a piece of real estate based depending upon certain factors. It is usually conducted by a real estate appraiser when an interested party wants to buy a property or in some cases used by mortgage lenders to determine properties with high market values providing security for a mortgage loan.
There are three commonly known methods of appraising or valuing real estate. Depending on the circumstances in which the real estate is to be used, each method has its own advantages and disadvantages. The following are the real estate appraising methods:
1. Comparative Sales Approach – a method to determine the value of a property by utilizing the data taken from recent sales of comparable properties in the market. Basically, it is a method where you compare a property to other properties with similar characteristics that have been sold recently.
2. Cost Replacement Approach – process of determining the value of a property by adding the estimated landing value and the estimated replacement cost of the building less depreciation. The replacement costs covers the expenses spent for improvements to replace an existing utility.
3. Income Approach – a method mostly applicable for commercial real estate properties. As its name implies, the determining factor of a property’s value is based on the capacity of the property to generate income.
Of course, it is possible to use a combination of such methods too since there isn’t really a definite approach when it comes to real estate appraising. However, the process can be very complex and will need some know-how. That is why, if you need help with real estate appraising, why not use ready-made financial model templates for real estate transactions that you can use as a base to start with or as a reference once you create a report for real estate appraising?
No more spending too much time creating from scratch and take advantage of financial modeler’s know-how by simply downloading Real Estate Financial Model Templates at eFinancialModels a platform which offers a wide-range of industry-specific financial model templates for different use cases created by financial modeling experts with a wide-range of know-how and vast experience when it comes to financial modeling tasks.
There are three commonly known methods of appraising or valuing real estate. Depending on the circumstances in which the real estate is to be used, each method has its own advantages and disadvantages. The following are the real estate appraising methods:
1. Comparative Sales Approach – a method to determine the value of a property by utilizing the data taken from recent sales of comparable properties in the market. Basically, it is a method where you compare a property to other properties with similar characteristics that have been sold recently.
2. Cost Replacement Approach – process of determining the value of a property by adding the estimated landing value and the estimated replacement cost of the building less depreciation. The replacement costs covers the expenses spent for improvements to replace an existing utility.
3. Income Approach – a method mostly applicable for commercial real estate properties. As its name implies, the determining factor of a property’s value is based on the capacity of the property to generate income.
Of course, it is possible to use a combination of such methods too since there isn’t really a definite approach when it comes to real estate appraising. However, the process can be very complex and will need some know-how. That is why, if you need help with real estate appraising, why not use ready-made financial model templates for real estate transactions that you can use as a base to start with or as a reference once you create a report for real estate appraising?
No more spending too much time creating from scratch and take advantage of financial modeler’s know-how by simply downloading Real Estate Financial Model Templates at eFinancialModels a platform which offers a wide-range of industry-specific financial model templates for different use cases created by financial modeling experts with a wide-range of know-how and vast experience when it comes to financial modeling tasks.
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About Jason Varner 
Financial Projections Template
25 connections, 1 recommendations, 92 honor points.Joined APSense since, February 16th, 2018, From Zurich, Switzerland.
Created on Dec 19th 2019 05:50. Viewed 561 times.
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