ABSTRACT
Chapter 5 puts pen to paper in an example of how a hypothetical buyer and seller would interact when determining the appropriate final sales price for a given property. The valuation logic for both the seller and buyer are elaborated to include the required return calculations for the parties to the transaction. The chapter discussion turns to the role that property appraisers, brokers, and lenders play in the valuation process. The market vignette for chapter 5 focuses on low-income housing as an investment alternative in light of the multitude of differences in the perception of value for a real estate asset.
