Determining the value of a property is a job of a real estate appraiser. Property value means the fair market value of a piece of real estate property. The actual value may be higher or lower, depending on the size and location of the real estate, and any improvements on the land.
Looking at the sales history of similar properties in comparable neighbourhoods is the most common means of determining property values. Real estate appraisers will base the value of similar properties using six months or a year of sales. In addition, appraisers may also use cost or income analysis to determine property value. The cost method involves determining the cost of building a similar structure at current prices. Income analysis entails determining the value of a real estate property by computing the amount of money it earns. Read more