Daniel Lloyd, Real Estate training (Issue Records)

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Rainmaker
4,208,240
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Residential - sales comparison

Residential income, office and retail - income approach

some specialty proerties require the cost approach!

Jan 03, 2019 01:18 PM
Rainmaker
4,115,662
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

It has little to nothing to do with preference... generally residential properties are appraised based on sales comparisons. Sales comparisons are also how we as agents "value" properties to list.

Jan 03, 2019 01:16 PM
Rainmaker
1,722,805
Lyn Sims
Schaumburg, IL
Schaumburg Real Estate Agent Retired

Did you copy & paste this from a text book?

Residential uses the sales comparison approach.

Jan 03, 2019 01:59 PM
Rainer
154,571
Ken Jones, Commercial Real Estate
Kenneth J. Jones, Inc. - Toms River, NJ

Daniel Lloyd The cost approach is nothing more than an accounting procedure to summarize either the actual or estimated cost to create something; it does NOT indicate market value - PERIOD!!!

The income approach should ALWAYS be the valuation methodology when forming a credible opinion of the value of an income producing property. Sales comparison CANNOT and SHOULD NEVER be used to form a credible opinion of an income producing property since income producing property is bought and sold based SOLELY on the property's ability to generate net income for its owner.

Consequently, when forming a credible opinion of the value of an owner-user building, the sale comparison methodology MUST ALWAYS be used since such property is bought and sold based solely upon the physical utility of the property to the owner.

Your welcome. 

Jan 03, 2019 01:55 PM
Rainmaker
514,124
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

The Sales Approach is most commonly used in our business. Cost may be useful to an insurance company and income if it's income producing property like commercial.  

Jan 03, 2019 01:32 PM
Rainmaker
894,550
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Niles, AKA Ken Jones, said it all perfectly as I would have expected.

Jan 03, 2019 04:21 PM
Ambassador
4,256,593
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Residential - sales comparison

Residential investments - income approach

Those are the only two I've ever used personally, #1 being the vast majority in my experience.

Jan 03, 2019 02:53 PM
Rainmaker
6,605,433
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Use the comps.

Jan 03, 2019 02:29 PM
Rainmaker
5,585,122
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

I agree wtin Nina Hollander and Wayne Martin .  Income approach is something an accountant would work on when it comes to commercial real state especially in a high rise building or a retail center.  A

Jan 03, 2019 01:25 PM
Rainmaker
2,062,514
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL
www.SIBRealty.org 305-931-6931

So many good answers. I ageee with all of them.

Jan 03, 2019 07:11 PM
Rainmaker
910,621
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Not an appraiser so my opinion is only an opinion.

The approach used should reflect the intended use of the property. I have seen appraisers use more than one approach and then come up with a valuation that most reflects the buyer's intentions for the property. i.e. a single family home being purchased as a pricipal dwelling vs. a 10 unit building being purchased as an investment.

Jan 03, 2019 06:46 PM
Rainmaker
5,571,848
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

if it's a multi family, the income approach and sales comparison work well...

cost approach for a new or very young home .... 

resale home would be sales comparison....

Jan 03, 2019 03:34 PM
Rainmaker
2,641,502
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

If it is not clear, I use all three or two or a combo....

Jan 03, 2019 03:26 PM
Rainmaker
1,899,087
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

The appraisers in our neck of the woods use the sales comparison approach.

Jan 03, 2019 02:15 PM
Rainer
341,153
Ron Tissier
Chapman Hall Premier Realtors (404) 580-9069 - Atlanta, GA
Defining Homes. Defining Lifestyles.

As a former appraiser, it depends on the circumstances and need.

Cost approach is used for new construction or restoration to a home as the result of fire, storm or other peril.  Must be proficeint in cost of materials, labor, etc.

Income approach is used for any type of rental... residential or commercial.

Sales approach is the standard and preferred method for Realtors and is based on area or neighborhood home sales. 

Cheers!

Feb 02, 2019 06:35 AM
Rainmaker
4,937,472
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I only do sales comparisons.

Jan 07, 2019 07:22 AM
Rainmaker
4,012,286
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

I like sales comparison

Jan 04, 2019 04:47 PM
Rainmaker
3,985,855
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Comparable sales

Jan 04, 2019 04:34 PM
Rainmaker
1,387,023
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Residential = sales comp, 99% of the time, unless it's a unique or "non-conforming" property or not living up to it's highest and best use (think 2 bedroom home in the middle of a commercial district.  Out here we had one lady who refused to sell her home, on the side of a freeway, and kept it until she died.  After she died, her kids sold it for WAY more than it was worth, as it was the last parcel needed to build a shopping center.

Jan 04, 2019 09:59 AM
Rainmaker
4,041,554
Richard Weeks
Dallas, TX
REALTOR®, Broker

Looks like you received the right answer.

Jan 04, 2019 08:54 AM
Ambassador
3,055,494
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

It is not what I prefer. It is what the custom is and what the lender orders.  Sales comparison is the standard in residential sales. 

Jan 04, 2019 08:21 AM
Rainmaker
4,799,481
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Sales comparison is typically the best.  Easier and more accurate.

Jan 04, 2019 06:51 AM
Rainmaker
821,792
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

I am not an appraiser, but the different methods are used when it makes most sense e.g. residential based on comps; investment based on income and perhaps some new construction or renovation based on cost.

Jan 04, 2019 05:40 AM
Rainmaker
3,331,180
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

It depends what you are appraising. For residential real estate the sales approach is the only true approach to arrive at current market value.  For income/multy/commercial I do both the sales and income approaches. 

Jan 04, 2019 05:32 AM
Rainmaker
4,433,683
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I am not an appraiser

Jan 04, 2019 04:53 AM
Ambassador
2,074,137
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Depends on the type of property. Wayne Martin answered it well.

Jan 04, 2019 04:37 AM
Ambassador
5,407,792
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Depends on the purpose, we use all three.

  • Comparison for Real Estate sales
  • Cost for Damage Appraisals
  • Income for Timber.
Jan 03, 2019 11:36 PM
Rainmaker
1,596,586
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

I do only residential- 

the sales comparison approach

Jan 03, 2019 10:13 PM
Rainmaker
960,761
Diana Zaccaro Broker Associate
Tropical Beachside brokered by eXp - Cocoa Beach, FL
"The Accidental Blogger" Cocoa Beach, Florida

It's not a question of what we prefer. The method used depends upon the type of property being valued in the appraisal.

Wayne Martin and Barbara Todaro gave great answers. 

Jan 03, 2019 09:38 PM
Ambassador
3,038,920
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

totally depends on what is being appraised.  Business= income, residential comparison, school or church= cost are the most commonly used methods to my knowledge.  Once in a while is a very unique property where comparison alone isn't possible. (while I am not an appraiser I have taken the classes)

Jan 03, 2019 08:31 PM