Question

When an investor decides to make an offer there are key factors to consider that help determine a price to offer. What is a rule of thumb for estimating market value of income-producing residential property?

Answer 1

Answer:

Appraisal

Explanation:

An appraisal is a process that is used to determine the market value of real property. It is an estimate or opinion that is expressed at a particular day in respect of the value of income generating residential property.

Examples of the forms in which an appraisal reports can be presented include a lengthy report, a completed form, or an oral report.

Individuals, mortgage firms, government agencies, companies and investors use the appraisal reports to make decisions regarding the price real estate transactions after considering key factors like age of the asset, location, expected revenue, and among other key factors.

Therefore, a rule of thumb for estimating market value of income-producing residential property is an appraisal.