The Market Weighted Asset Model
This method appraises the property by deriving its value from the most likely purchasers active the market at any given time.
- V = value of property
- b(i) = one likely purchaser's valuation of asset
- p(i) = probibility that market conditions or zoning restrictions will allow the intended use
- where: 1 = p(1) + p(2) + p(3)...
- so: V = b(1)*p(1) + b(2)*p(2) + b(3)*p(3)...