One key tool used by real estate investors and appraisers to value real estate is the cap rate. A cap rate (short for capitalization rate) is essentially the rate of return on an investment that an investor should receive from an income producing property. With this tool investors can compare different income producing properties based on the income each property generates and the amount of the investment needed to purchase each property. The cap rate is calculated by divid

Real estate appraisers and valuation professionals generally calculate property valuations using the three different methods of value: the c

Real estate appraisals are objective analyses and valuation of certain tracts of land, buildings, and/or other property for the purpose of a