Since housing is seasonal in many ways using a year-over-year comparison is the correct methodology to use when comparing market conditions.At first glance you might notice that the city of Aledo has a drastically higher median price when compared to last year.

Each property is so different that that is why a good engineering based study with on-site property review is the IRS' preferred methodology and keeps you out of IRS audit territory. 

In our opinion, the biggest factor is the tenant pool - which also depends on location and property condition.We've defined the Metro Detroit Cities & Detroit Neighborhoods on our website and shared our methodology there.Some factors:Average Sales PriceAverage Rent AmountAverage Average EducationSchool RankingCrime+more @Drew Sygit That’s really helpful — I hadn’t thought about how much those class definitions can vary by market and even by neighborhood.

I will explain.When I founded our investor services company in 2005, I followed the methodologies that national chains like McDonald's, Costco, and Whole Foods use to select store locations and localize their offerings.

Quote from @Dana Yobst: Quote from @Julio Gonzalez: @Dana Yobst While it may seem like a simple concept, it's actually a very complex process that requires significant documentation as well as specific methodologies.

(I bought at the ‘right” time but sold WAY too early and left a LOT of profit on the table).Since “REITs” are actually a form of a C corp that doesn’t pay tax at the corporate level, and must have 75% of its assets invested in real estate, and since the interpretation of real estate has expanded significantly over the years, REITs cover a wide variety of properties, business strategies, methodologies, and management motivations.The short answer to your question is that theoretically, the higher the growth in FFO per share the REIT is able to generate from Organic growth, and not for example because they’re able to refinance their debt at a lower rate, the higher the multiple of FFO they command, and usually the closer to or amount over NAV they sell for.Although I utilize the advice of two analytical firms both specializing in REITs, I ultimately make my own decisions as to what to invest in me how much.  

They involve broader changes, such as updating the base year for price indexes, incorporating new economic census data, revising methodologies (ie, their guess), or even reclassifying industries to align with international standards like the North American Industry Classification System (NAICS).

(the IRS standard for STR is 39 years)When my client asked for more details on why they used the above methodology, the firm said, "We're not concerned about audit risk", and they had reviewed public records and felt the report was correct.When I asked them if they’d be reimbursing my client for loss of tax benefits and penalties in the event the cost seg report failed an audit, they very quickly revised the report with county assessment for land value (instead of 20/80), and didn't answer the question on why they selected 27.5 years for a STR or the reasoning behind choosing the Rule of Thumb method.I would be very cautious in using self-service and virtual reports.

Also, what’s your methodology for considering the price competitive?

@Bruce Woodruff While it may seem like a simple concept, it's actually a very complex process that requires significant documentation as well as specific methodologies.