When working with commercial properties, the appraiser develops an estimate of market rent by ______ and comparing rents across the subject and comparable properties.



Answer :

When working with commercial properties, the appraiser develops an estimate of market rent by Converting income to annual dollars per area unit and comparing rents across the topic and comparable properties.

There are four primary methods a true estate investor or agent can use to judge the potential value of a rental property. No one method is ideal. Each could be a rule of thumb; if buyers or agents use quite one on the identical property, they will get a stronger picture of its value. The primary method is that the sales comparison approach (SCA). The second method is Gross rent multiplier approach. Third method which is employed is that the income approach. The forth method is that the cost approach. These are the subsequent methods during which we will calculate our income to annual dollars per area unit.

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