How to Assess Any Real Estate With the Approaches to Value

The valuation steps applied to create a supported conclusion of a defined value based on an analysis of applicable general and specific data. Assessment in creating an opinion of real estate value follows specific sets of processes that reflect 3 different methods. These include:

– Cost Method
– Direct Comparison Method
– Income Approach Method

One or more of these methods can be used in the assessment of real estate valuation. The methods to be used will rely almost entirely on the type of property being assessed or appraised; however may also factor in the use of the appraisal, the scope of work involved, and the data availability for the analysis.

Cost Method

The cost approach to assessment and appraisal is established by understanding the construction methodologies and property attributes related to cost. The cost approach is estimated by adding the cost of land to the current cost of construction related to all improvement on land, and subtracting depreciation in all improvements on the land. The construction costs of buildings would include a reproduction cost or a replacement cost of the same or similar like materials or systems. This approach works best when it used for the assessment of new or newer properties that are not frequently exchanged in the market. The actual costs are usually derived from cost estimator software, cost manuals, builders, and contractors. Note: The land would remain a separate value when using the cost approach.

Direct Comparison Approach

The direct comparison method to assessment of real estate is most useful when there is a large number of similar like properties that have recently transacted on the market or are currently listed on the market. Using this method, the assessment would come from identifying the subject with similar properties, called comparables (or comps). The sale prices that most identify with the subject would have a heavier weight on the value, oppose to one that is further from the subject characteristics. Most of the time the comparables would create a range of value, upon which; opinion must be used to find an exact value. Several elements or factors are used to qualify the degree of similarity between comparables and the subject. This would include: real property rights, financial terms, property conditions of the sale, post sale expenditures, location, market factors, physical characteristics, economic characteristics, use/zoning, non-real estate components of sale (chattels, fixtures). After the best comparables are set, a dollar figure or percentage is applied to the sale price of each property to estimate the hypothetical value of the subject. For instance comparable A has 1 more bathroom than the subject; therefore subtract $9000 from the comparable to hypothetically get the sale to reflect the same characteristic as the subject.

Income Approach

The income method to the assessment of real estate would be from an analysis of present value of the future benefits of property ownership. A property’s income and resale worth upon return may be capitalized into a current, lump-sum amount. There are two methods of the income approach; one is direct capitalization and the other yield capitalization. Direct capitalization is the relation between one year’s income and worth indicated by either a capitalization rate or an income multiplier. Yield capitalization is the relationship between several years of stabilized income and worth at the end of a specified period reflected in a yield rate. The most commonly used yield capitalization method would be the discounted cash flow analysis.

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4 Advantages of a Virtual Doorman System

Virtual doormen are fast becoming a popular alternative to hiring a regular physical presence for many commercial properties, and their popularity is also rising for residential buildings. The reasons for this are numerous, as are the many advantages that this kind of service can offer.

Although there are several concerns that people may initially have with this kind of remote solution, the reality is that if put in place effectively, people can benefit from the following plus points that automatically come with adopting this kind of system.

Firstly, one of the main advantages of a virtual doorman solution is that it is far less expensive than hiring a physical presence when it comes to commercial properties. Many commercial buildings like to have a physical security presence, but in some cases this can be costly for something that is not entirely necessary.

A virtual system is a more affordable option as it involves only using the service when someone tries to enter a property to make a delivery or carry out some other necessary task. A link is established by video and audio so that identification measures can be made before access is allowed; this means that no full time staff member needs to be employed to complete this identification task.

A second major advantage is for tenants, rather than commercial building owners or users. Millions of parcels and packages are attempted to be delivered each year, yet often the tenant is not present to accept the delivery and therefore this results in a failed delivery.

This is especially important considering that so many people do their shopping online these days, meaning more and more parcels are being delivered at hours when people are at work or at school. A virtual doorman can assist in this instance, allowing parcels to be delivered first time, every time.

This can save a great deal of time and stress, especially if the delivery is urgent. Many residential property owners looking to improve the experience of their tenants would be wise to consider using this simple and highly convenient solution in their buildings.

Another major advantage is that this type of system can actually be used for different reasons other than allowing access for deliverymen. Although the delivery of packages and parcels is a major issue for many tenants, so is allowing repairmen to enter the building for work, or allowing access to emergency services.

A virtual doorman solution can assist in both of these two cases, and in fact entry to a property can restricted in any way that the building owner likes. This can involve using more or less stringent security checks, and can allow access for any number of reasons. This tailored approach can be very efficient in allowing repair work to be carried out or allowing emergency services in during a crisis.

Fourthly, a major advantage of this type of system is that it allows building owners to take advantage of the latest technologies, which are improving each and every day to be safer and more secure. The aiphone intercom systems now used in virtual doorman services mean that identity can be checked in a number of ways.

These technologies are sure to improve in the future, which means that investing in this type of system now can only bring further security gains and advantages in the coming years too. This is another convincing reason why choosing a virtual doorman could be a great choice for modern day property owners.

These are just four of the major advantages of investing in a virtual doorman service. From allowing commercial property owners and tenants to gain significant benefits in the way of allowing access to deliverymen, repairmen and the emergency services, the popularity of this solution looks likely to grow in the future too.

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Residential Log Cabins Offer Great Summer Fun

Residential log cabins have become extremely popular lately. It seems that simplicity is making a comeback in an age of interconnected clutter. But what is it about residential log cabins that attracts so many people? For the majority of us, these cabins offer a vista into the world of minimalism. For any summer traveller looking to get away from it all, this is a perfect world to enter.

Enjoy nature inside and out

Whether it’s fishing, hunting, hiking or just enjoying the warm summer air, a residential log cabin will be where you want to go. It offers a pleasant retreat from the day’s activities, and when evening comes, you’ll love the wooden atmosphere as you settle in for the night. The natural interior makes you feel at home in a world where so much of living is manufactured. You have the perfect place to find peace from the constant noise and movement of modern day life. You can enjoy your world at a slower pace and make sure that you don’t miss a thing.

Summertime is, for most, the only chance we get to break outside of the workplace and drop into nature. Residential log cabins are the perfect place to spend long summer nights with those you love. They offer small, quaint style at an affordable rate, and they bring traditional class with a modern flare that you can customize. Most people love the rustic façade, but who’s to say the interior should follow suit? In a residential log cabin, you can feel free to add your personal touch and fulfil your wildest interior design dreams. Just peruse Pinterest for five minutes, and you’ll be swamped with brilliant décor ideas.

Holidays are better with a residential log cabin

Residential log cabins can make for a great destination holiday with cabins strewn all across Europe. But for those who might already own a good plot of land, building your own cabin won’t take too much trouble, either. Of course, if you aren’t up to the task of chopping your own logs, there are plenty of contracting companies who will survey your plot and build you your dream residential log cabin very quickly and at a fraction of the cost of a traditional brick and mortar house.

Do you have a tight holiday budget? Residential log cabins can be rented or bought, but neither option is going to break the bank. Unlike lavish country summer homes, residential log cabins offer just enough space for what you really need. Most cabins register in the range of 6m by 11m, though you can certainly find options larger or smaller in order to accommodate your needs. Residential log cabins are either fixed or mobile, but even the mobile models can fit four bedrooms, an en-suite, a lounge, a kitchen, and a dining room. More economical living quarters means more time together as friends and family and less time spent paying energy bills or cleaning the empty spare bedroom.

Making the right choice

With the demand for residential log cabins so high, the hard part is choosing what you want yours to look like. You can definitely opt for the traditional A-frame style, or you can take a modern twist and find something that is a little more elegant, striking, or charming. Some designs allow for plenty of natural light, allowing you to bask in the sunshine (which is the reason you took a summer holiday in the first place, right?), and others bring out the sights and sounds of the woods, making you feel as if you’re in the middle of a thicket.

Unlike the draughty old wooden homes of yesteryear, modern residential log cabins are built with your comfort in mind. Though the classic single-layer wooden wall is still available, those who want to live year-round in their cabins have the option to build them with a dual-layer wall, or “twin skin,” with up to 50mm of insulation between two wooden walls. This ensures a healthy, comfortable temperature no matter what the weather is like outside. And speaking of weather, Mother Nature can’t harm a well-built cabin as much as a traditional concrete structure. Residential log cabins are sustainable and durable through heat, snow or rain. Some traditionally built cabins have been standing for over 300 years. Talk about reliability!

Residential log cabins also require a fairly low amount of maintenance, which means that they will not demand too much of your time. You’ll be able to relax more often than you will have to work to keep your house in good shape. The natural strength of the wood protects it from the common elements far better than brick or concrete homes. Most residential log cabins call for limited preparatory maintenance just before winter, but beyond that, nature will not distract you from what you want to do most.

People who have the pleasure of owning and living in log cabins have described them as inviting and warming. Others have said that hey evoke peacefulness. For some it’s the smell of fresh perked coffee and baked bread that comes to mind whenever they’re inside. The other most appreciated feature is the ability to incorporate a truly personal decoration style ranging from very rustic to modern/contemporary. As for visitors who get to spend some time with their friends living in the woods, they compare it to paradise, and the proud owners agree as they could not imagine living anywhere else.

So many people love their residential log cabins, yet despite all the praise they get, these cabins seem to be one of the best kept secrets of summer fun. If you haven’t given much thought to the idea before today, now is the time to seize the opportunity and find yourself a summer residential log cabin. You never really know what it’s like to live, sleep, and dine in a cabin until you’ve experienced it first hand, and once you enjoy a few nights away from it all, you’ll have a tough time going back to reality.

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