Property valuation in the United States is the process of appraising real property by estimating its value. The value of a property is determined by its market value, which is the price that a willing and able buyer would pay for the property in its current condition. The market value is affected by a variety of factors, including the location of the property, the quality of the property, and the overall market conditions.
In the United States, the regulation of real property valuation is primarily a function of state and local governments. There are, however, a few federal laws that impact the valuation of real property, such as the Tax Reform Act of 1986 and the Housing and Economic Recovery Act of 2008. The most common type of real property valuation is the appraised value, which is determined by a licensed appraiser. Appraisers must adhere to the Uniform Standards of Professional Appraisal Practice, which are promulgated by the Appraisal Foundation. The Appraisal Foundation is recognized by the US Congress as the source of appraiser standards and qualifications. In addition to appraised value, there are a number of other methods that may be used to value real property, such as the cost approach, the income approach, and the market approach. Each of these methods has its own strengths and weaknesses, and the appraiser will select the method or methods that are most appropriate for the particular property being valued. The final value of the property will be the appraised value, unless the property is sold at auction, in which case the sale price will be the value.
The process of calculating real property valuation in the United States can be quite complex and varies depending on the method used. The most common methods used are the sales comparison approach, the income approach, and the cost approach. The sales comparison approach is the most commonly used method of real property valuation in the United States. This approach compares the sales price of a property to the sales price of similar properties in the same area. The properties that are used for comparison must be of similar size, location, and type. The income approach is used to value properties that generate income, such as rental properties. This approach estimates the value of a property by calculating the present value of the property’s future net income. The cost approach is used to value properties that are not income-producing. This approach estimates the value of a property by calculating the present value of the property’s costs to replace it.
There are many additional websites that offer real property valuation services in the United States. Some of these websites are:
An economist can provide valuable assistance with real property valuation by applying economic principles, analytical tools, and empirical methods to assess the economic worth or market value of a property. Here are some ways in which an economist can help with real property valuation:
In summary, an economist can provide valuable assistance with real property valuation by applying economic principles, market analysis, valuation methods, forecasting, and expert testimony to estimate the economic worth or market value of a property based on its characteristics, income potential, market conditions, and other relevant factors.