What's the process you go through to determine a value for a property?
For people in acquisitions or appraisal, what process do you go through to determine a value for a property?
Historically I've just gone with a quick cap rate and looked at a sale comp chart for trades and ball parked a value. I mean at the end of the day, the value of a property is how much people are willing to pay for it.
I've been getting some blowback from our analysts saying we need to be using a full blown discounted cash flow approach with exit cap rates and discount rates to get a value. I just don't see the need since it's garbage in garbage out. Anyone here think the "discounted cash flow" approach is the gold standard to value a property? How do you comp out discount rates and exit cap rates?