Market Analysis, Broker Price Opinions, Broker Opinions of Value
To provide our clients with a clear picture of market trends and property valuations, Omniterra Solutions offers detailed market analysis in both the residential and commercial sectors.
A Broker Price Opinion is the process a hired sales agent utilizes to determine the selling price of a real estate property. BPOs are popularly used in situations where lenders and mortgage companies believe the expense and delay of an appraisal to determine the value of properties is unnecessary. A financial institution will order a BPO from a Real Estate Broker in which the broker will do a drive by BPO or an interior BPO.
Utilizing comparable properties and understanding net income values of assets, allows our clients to make the most informed decisions
THREE APPROACHES TO VALUATION
1) Sales Comparison Approach (SCA): This approach compares a subject property’s characteristics such as number of bedrooms, bathrooms, square footage, with those of comparable properties which have recently sold in similar transactions. The process uses one of several techniques to adjust the prices of the comparable transactions according to the presence, absence, or degree of characteristics which influence value.
2) Income Approach: This approach is common in commercial properties (retail, office, industrial, etc) and utilitizes information from the property’s income and expenses in order to establish a value. Depending on the type of leases in place, certain expenses can be passed on to tenants and increase the Capitalization rate of a property.
3) Cost Approach: The Cost Approach or the Replacement Approach is a valuation based on a total replacement cost of the property minus any depreciation. This includes the cost of land, any off-site and on-site improvements, and the construction of the physical property including any internal improvements and upgrades.
Allow our agents to create a market analysis for your property to save you time and money with the sale/purchase of your property.