The market comparison method is best suited for estimating the value of residential properties. Valuation in areas where the real estate market is not active is complicated by the lack of comparable real estate transactions. As an analyst in a real estate valuation company, I notice that very few residential real estate sales transactions are carried out in the far northwest of Slovenia. With my Graduation Thesis I would like to examine whether there is an inactive market for single-family homes in the mentioned area and illustrate the valuation process in this area using two different methods.
Since fewer houses than apartments are sold in Slovenia, I chose a single-family house as the property type. I calculated the number of single-family homes sold and rented and the number of overnight stays by municipality for the period from the beginning of 2021 to the end of 2023. I conducted an analysis of the market for single-family homes and overnight stays by municipality and decided to appraise a single-family home in a municipality of Bled, which was sold at the end of March 2024. I compared the appraised values determined using two different valuation methods with the contract price of the appraised house and found out whether it is possible to use the yield method when there are no comparable sales transactions for valuation using the comparable transactions method.
|
