Real Estate Characteristics
▶Capital appreciation of a property is determined by having the property appraised. But for now you should just know that an appraiser uses actual sale transactions that have occurred and other pieces of market data to estimate what your property would be worth if it were to be sold.
▶ If the appraiser thinks your property would sell for more than you bought it for, then you’ve achieved a positive capital return. Because the appraiser uses past transactions in judging values, capital returns are directly linked to the performance of the investment sales market.
▶The investment sales market is affected largely by the supply and demand of investment product