Measuring Random Appraisal Error In Commercial Real Estate

Measuring Random Appraisal Error in commercial-grade-grade Real Estate Recent empirical studies imply that close appraisal actus reus is nonrandom, which suggests that strategies that advocate portfolio assembly over singular property selection may be defective. Each amount of the appraisal process involves an unknown amount of estimation phantasm. The gang of these errors is unlikely to produce a perfect, error-free estimate of value. Thus, appraisal error is virtually unavoidable.

Investors need reasonable estimates of value when buying, selling, or retaining commercial property, so an unknown amount of appraisal error adds uncertainness to the decision-making process. Despite the uncertainty, investors have learned to make allowances for appraisal error in their decision-making processes. The way in which real estate investors attend appraisal errors has a material effect upon the decisions that they make. In particular, the overriding belief among real estate professionals is that apprais...If you want to get a full essay, order it on our website: Ordercustompaper.com

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