PURDY'S METHOD

So how did this happen, how is it that relatively intelligent people over paid for so many properties? It is simple; at the end of the day no one knew any better. Quite simply there was not an easy or effective way for the average person to truly valuate the properties they were buying, so they depended on an appraisal or the "Sales Comparison Approach to Value" instead of a "Highest and Best Use Appraisal" supported by engineering, recent sales comps or a market rent survey just to name a few. Unfortunately the "Sales Comparison Approach" to value does not take in to account the economics and dynamics of developing a property and can often provide an artificial value. Purdy believes that by providing people with an easy and effective way for the average person to valuate land or a development project, there would be fewer victims overpaying for properties. More importantly the properties that were for sale would be more inline with what they were really worth... Purdy believes that..