Rental apartment property-Financial analysis.docx - Running head FINANCIAL ANALYSIS Financial Analysis Student\u2019s Name Institutional Affiliation 1

Rental apartment property-Financial analysis.docx - Running...

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Running head: FINANCIAL ANALYSIS 1 Financial Analysis Student’s Name Institutional Affiliation
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FINANCIAL ANALYSIS 2 The paper is going to evaluate the fair market value of the rental apartment property by use of different techniques. An estate professional consultation will in addition be conducted on the fair selling price of the property in the current market. The paper concludes with different strategies that can be adapted to acquire the respective property. From the previous computations in week two, it was found out that the average price for the three comps amounted to $4,080,969. The real estate professional asserts that the current asking price of the property taking into consideration the current market forces is $4,272,727. This approach of comparing the asking price of the property with the market price is referred to as sales comparisons approach. This is the most commonly used method for evaluation of real estate properties alongside single-family homes. The method entails comparing the rental apartment property with similar properties in terms of sales or revenue generated by them. The comparative properties are known as the comparables and they are only called comparables when they are similar in nature and can be sold within the year under the normal market conditions. The other techniques in the evaluation of the property include income capitalization and cost approach respectively. The income capitalization approach is used in the valuation of homes,
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  • Spring '16
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