Valyceum Estates
| Office: 585-777-4116 | Fax: 585-777-4108 250 Mill Street, Suite 500 Rochester, NY 14614 contact@valyceum.com privacy |
| Valuation |
No matter what anyone says, the true value of a property is what someone will pay for it in an
arms-length transaction.
With that said, it's helpful to try to figure out what a property is worth before listing it or before putting in
an offer on it. Generally, there are three major ways to determine the value of a property before it sells.
The most common is called a Comparable Market Analysis (CMA), which involves looking at similar
properties that have sold close to the one in question. Another way to determine value is by applying a
Capitalization Rate, which is used for income properties. Finally, new buildings are sometimes valued by
Replacement Cost, which is what it would cost to rebuild the property.
Because no two properties are the same, a proper CMA involves looking at properties within a close
geographic range and with similar amenities. For example, to find out what the value is on a large three
bedroom ranch in Pittsford might be, we'd look at other three bedroom ranches within a few miles. One of
the most interesting things going on in the Real Estate community right now is figuring out what adding a
renewable energy improvement does to property value. Because these technologies have been available for
about ten years now, we are only just beginning to get enough information on homes that have sold with
these improvements on them. Valyceum Estates is truly on the cutting-edge of this research, heading up an
academic research project called "Applying Hedonic Modeling to Clean Energy Amenities in Single Family
Homes." We're one of the first groups in the country to look at this and we're excited because it's becoming
an increasingly important factor in helping buyers and sellers understand what a property is worth. More
detail about this study can be found on our parent website at www.valyceum.com/renewableresearch
(opens in a new browser).
arms-length transaction.
With that said, it's helpful to try to figure out what a property is worth before listing it or before putting in
an offer on it. Generally, there are three major ways to determine the value of a property before it sells.
The most common is called a Comparable Market Analysis (CMA), which involves looking at similar
properties that have sold close to the one in question. Another way to determine value is by applying a
Capitalization Rate, which is used for income properties. Finally, new buildings are sometimes valued by
Replacement Cost, which is what it would cost to rebuild the property.
Because no two properties are the same, a proper CMA involves looking at properties within a close
geographic range and with similar amenities. For example, to find out what the value is on a large three
bedroom ranch in Pittsford might be, we'd look at other three bedroom ranches within a few miles. One of
the most interesting things going on in the Real Estate community right now is figuring out what adding a
renewable energy improvement does to property value. Because these technologies have been available for
about ten years now, we are only just beginning to get enough information on homes that have sold with
these improvements on them. Valyceum Estates is truly on the cutting-edge of this research, heading up an
academic research project called "Applying Hedonic Modeling to Clean Energy Amenities in Single Family
Homes." We're one of the first groups in the country to look at this and we're excited because it's becoming
an increasingly important factor in helping buyers and sellers understand what a property is worth. More
detail about this study can be found on our parent website at www.valyceum.com/renewableresearch
(opens in a new browser).
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| the Renewable Realty |