• .Century 21 Horizon: Your Trusted Property Evaluation Partner

Century 21 is always ready to visit your property and provide an accurate evaluation. Our team brings years of experience in real estate, construction, development, and commercial enterprises.

The Three Valuation Approaches

Appraisers determine property value using three primary methods:

Sales Comparison Approach (or Direct Comparison Approach)

• How it works: The appraiser assesses recent sales of comparable properties (known as “comps”) in the same area.
• What it considers: Similar properties are identified based on location, size, features, and overall condition.
• Adjustments: The appraiser adjusts the sales prices of the comps to reflect differences compared to the subject property, such as a modern kitchen or an additional bathroom.
• Best for: Residential properties.

This data is generally gathered from the MLS in the area. Local MLS services have very specific rules about reporting etc. making this data verifiable by the appraisers.

Cost Approach

• How it works: The appraiser estimates the cost to construct a new property with similar utility.
• What it considers: Depreciation is subtracted based on the existing property’s age and wear.
• What it adds: The value of the land is combined with the depreciated cost of the structure.

Best for: Properties that are new.

Income Approach

• How it works: This method estimates the property’s value by assessing its potential income generation.
• What it considers: It employs techniques like the capitalization rate or discounted cash flow to determine value from future income streams.
• Best for: Investment or commercial properties focused on generating income.

Conclusion

In conclusion, Century 21 Horizon is committed to reporting, gathering, and utilizing data as it becomes available. Your trusted partner for Residential, Commercial and development properties evaluations.