**Real Estate Valuation** is the process of estimating the market value of a property based on its characteristics, location, and market conditions. ### **Main Valuation Methods** 1. **Sales Comparison Approach** * Compares the property to recently sold similar properties (“comparables”) in the same area. * Best for residential properties. 2. **Income Approach** * Calculates value based on the income the property generates (e.g., rent) using capitalization rates or discounted cash flow. * Common for commercial and investment properties. 3. **Cost Approach** * Estimates value by calculating the cost to rebuild or replace the property, minus depreciation, plus land value . * Used for unique or new buildings where sales data is scarce. ### **Key Factors Affecting Value** * **Location** (proximity to schools, transport, amenities) * **Condition & Age** of the property * **Market Trends** (supply, demand, interest rates) * **Zoning & Legal Restrictions** * **Economic Indicators** (inflation, employment rates) If you want, I can give you a **simple step-by-step guide to valuing a property yourself** using a hybrid of these methods. Any qustion visit: https://minecrftgeek.com/