To add the Income and Cost approach, you can add in the Property Value section. Currently HouseCanary does not provide any data for these fields.
The income method estimates a property's fair market value by multiplying estimated annual revenue by a rent multiplier. The rent multiplier is calculated by dividing market value by annual gross income for similar properties, and calculating the average rent multiplier.
The cost approach method, is an estimate of the replacement value of a property. It is the sum of the cost of the land and the cost to build the building, with depreciation subtracted. Based on the principle of substitution, the cost approach method in essence says, you shouldn’t pay more for a property than the cost of a comparable site and building. The cost method is particularly useful in situations when market data is scarce, the property value significantly exceeds its replacement cost, surging prices due to housing shortages/increased demand, and properties with unique features.
|PREVIOUS:||NEXT (NEW SECTION):|
|< Final Reconciliation||Additional Comments >|