Real Estate Valuation & Underwriting

[Andrew Moore]

I am looking to get started investing in Real Estate in Grand Rapids, Mi. I am currently looking at a deal that multiple buildings (a combination of multiunit and single family homes) and a total of 11 units. The asking price is absolutely astronomical when I crunch the numbers. The listing agent is stating that they are valuing the property based on the market value approach instead of based on the Cap Rate or GRM. My question is whether or not this is a standard approach for this type of investment?