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- Before You Bid: The 3 Lenses Pros Use to Value CRE
Before You Bid: The 3 Lenses Pros Use to Value CRE

If your valuation relies on one method, you’re not valuing—you’re guessing.
Professionals triangulate value using three lenses. Each one tells part of the story; together, they reveal the truth.
The 3 lenses pros use
Income approach: Converts cash flow into value. Learn to read cap rates as a risk signal, not just a pricing shortcut.
Market (sales comparison): What similar assets actually traded for—grounding your number in reality.
Cost approach: What it would take to replace the asset today—useful guardrails in thin or unique markets.
Beat the market before breakfast.
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Why one method isn’t enough
Cash flow can look great on paper until risk shows up in the cap rate.
Comps can mislead if the market is shifting underneath you.
Replacement cost ignores street-level demand and NOI strength.
What can make or break your returns
Market factors: supply/demand dynamics, leasing velocity, rent trends, financing conditions.
Common mistakes: trusting broker pro formas, using stale comps, ignoring exit assumptions.
Hidden capital expenses: roofs, HVAC, parking surfaces, code compliance—items that quietly crush yield.
Whether it’s your first property or your fiftieth, professional valuation is the difference between a deal that works and one that works you.
To your success,
Legacy Alliance Insiders
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