Economic Principals use in Appraisals

 

Real property appraisals utilize a number of economic principals.  Supply and demand, competition, conformity, change, anticipation, externalities and balance are some of the economic principal considered during the analysis of markets.  Substitution is the principal upon which the sales approach is bases.  Opportunity cost, increasing and decreasing returns and surplus productivity are considered in the income approach and in the highest and best use analysis.  Contribution is considered within the cost approach analysis.

 

Appraisal reports also consider the value / cost / price concept. 

 

Contact us with your questions or concerns regarding economic principals or regarding your specific appraisal assignment in Nevada at 1-702-568-6699.  We can also be contacted via e-mailed at grigdon@cox.net.  

                                 



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Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.