How to Value Apartment Buildings

There are a number of Apartment buildings for sale in my area right now, checking with my realtor, he says there are no comps because there have not been any apartment sales in this area since 2010. The market has changed so much since then, how am I to determine value and offer price?

Need more info

Would need to know size of buildings, # of units, gross income, expenses, and NOI before debt service. Also what part of the country are you in? Doesn’t sound like your realtor is providing the right answers or perhaps asking the right questions. There’s always ways to value these properties even w/o comps. With some more info I’m sure many of us on this board could point you in the right direction.

Use GRM and/or Cap rate.

For income producing commercial real estate like apartments, you use a Cap Rate. Ray Alcorn explains it well in this article:

Cap Rate Formula | What’s Your Property Worth?

http://www.creonline.com/cap-rate-formula.html