Valuations in a tough market: Thinking outside the box

Description

Abstract: Under the market and income approaches, recent market data is used to derive current value. But scarce financing and weak performance are keeping risk-averse investors at bay. Moreover, many recent deals may have involved distressed buyers forced to sell. With few truly comparable deals for appraisers to hang their hats on, many are thinking outside the box. This article discusses the factors that appraisers study to normalize data and truly understand what’s happening in the marketplace.