Market Valuation

Market valuation is the process of estimating property value based on current market conditions, comparable sales, and income potential using accepted methodologies.

Valuation MethodBest Use
Sales comparison approachResale residential properties
Income capitalization approachInvestment properties with rental income
Cost approachNew construction or unique properties
Discounted cash flowMulti-year investment analysis
ReconciliationWeight multiple methods for final value
Valuation AdjustmentsImpact
Market conditionsAdjust for market cycle position
Property conditionDeduct for deferred maintenance
Location qualityPremium for superior locations
Time adjustmentsAccount for market movement since comps
Terms of saleAdjust for unusual financing or motivation


Related Terms

Fair Market ValueFair Market Value (FMV)Bank ValuationCapitalization Rate (Cap Rate)Comparable Sales (Comps) Cap RateProperty Appraisal

RERA licensed advisors

Banner Image

Free expert advice

Get property recommendations matched to your goals. No pressure. No commitment.