Real Estate Valuation Approaches Overview

acoustic blues mariachi, acoustic chicago blues cape verdean · 3:57

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Lyrics

[Verse 1]
Three pathways lead to property worth
Income streams and sales rebirth
Replacement costs beneath the surface
Each reveals a different purpose
When rentals flow like golden rivers
Income method always delivers
Cap rates whisper market secrets
Monthly cash that never sleeps

[Chorus]
Income, Cost, and Sales Comparison
Three approaches, built companion
Income cash divides the rate
Cost rebuilds what time would take  
Sales compares the neighborhood fate
Value found through each equation
Real estate's triple foundation

[Verse 2]
Bulldoze dreams and start from scratch
Cost approach will help you catch
Land plus brick plus steel plus labor
Minus age that time won't favor
New construction's truest measure
Depreciation steals the treasure
Insurance claims need this precision
Specialized use gets recognition

[Chorus]
Income, Cost, and Sales Comparison
Three approaches, built companion
Income cash divides the rate
Cost rebuilds what time would take
Sales compares the neighborhood fate
Value found through each equation
Real estate's triple foundation

[Bridge]
Recent sales paint market pictures
Comparable homes share similar fixtures
Square footage, location, condition matched
Sales comparison gets dispatched
Active markets speak in numbers
Residential truth never slumbers

[Verse 3]
Choose your weapon, read the signs
Income for the rental lines
Cost for courthouse legal battles
Sales when market data rattles
Appraisers blend all three together
Weighted truth through any weather

[Chorus]
Income, Cost, and Sales Comparison
Three approaches, built companion
Income cash divides the rate
Cost rebuilds what time would take
Sales compares the neighborhood fate
Value found through each equation
Real estate's triple foundation

[Outro]
Cap rates, blueprints, recent trades
Property value never fades
Three methods guard the analyst way
CFA knowledge here to stay

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