Types Of Real Estate Properties

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Real estate valuation is also known as property valuation or land valuation and defined as valuing the real estate property. There are two types of real estate properties: residential and commercial. Commercial property is a property that is designed for the sale of goods and services or for the purpose of manufacture of a product. Residential property is a property, building or solely for the purpose of use by a person or a family to live in on a day-to-day basis. Examples of commercial properties are office, buildings, malls, and apartments whereas, residential properties are homes, single family homes, and condominiums. Types of Real Estate Properties Different types of real estate properties are single family, condominium, commercial…show more content…
Condominium is defined as the collection of building of families along with their land on which they sit. These can be single family owned, known as detached condominiums or made up of a group of homes of various families, known as site condominiums. The appraisal of condominium can be done by income method, in which the returns from the property can be compared with the cost applied in the property. Land is the property that can be used for the construction of building or flats, apartments, office, malls, etc. These have higher value than manufactured homes or buildings as these can be manufactured at the wish of the owner of the land. The methods used for valuation of land are cost of development approach and comparison method. Valuation of Single Family Homes Sales comparison method is the method that includes the comparison of a property with quite similar characteristics and with the property that is recently sold. It is the best method to appraise a family home in a sub-urban neighborhood because in suburban areas, a property can be assessed only by comparing two properties with similar properties. This method is also known as market data approach, and the condition of the property and the important concepts behind this method are as follows: • The property should be sold in a competitive and open market only in the last year. • The property that is to be compared should be similar to the subject property as much as possible, but if the
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