Abstract:
The Real Estate Market can be considered one of the most difficult environments to invest in. Professionals acting in this ambit need to be proficient in several fields of knowledge: from the body of law applicable to this asset class to the different ways to maximize investors’ returns, even if the most challenging phase is represented by the evaluation one. This step is fundamental because the assets investors can buy and sell in the market are not standardized, like bonds or stocks, and these differences in size, quality and location must impact on final prices. Moreover, wrong investments can result hard to dismiss because of the illiquidity of the market. The aim of this study is to provide all the information useful for investors willing to exploit huge possibilities granted by managing this asset class properly.
In the first chapter, it is listed and described all the characteristics of the real estate market, defining the differences between real estate and real property under a juridical point of view, considering rights and limitation inbounded in it. The second chapter technically analyzes the main methods applicable to the valuation of any property, what is commonly defined appraisal process. Finally, the last chapter is focused on the application of the sales comparison approach, method commonly used to evaluate residential properties. Thank these examples it will be possible to understand that depending on the local markets - Miami and Cagliari in this case- certain variables change and professionals should be aware of it.
