What does the Value, Income, Factor (VIF) formula allow you to calculate?

The Value, Income, Factor (VIF) formula is designed to help calculate the value of a property based on its income potential and applicable factors. This approach integrates financial performance indicators, especially when dealing with income-generating properties. The formula takes into account the income that a property can produce and factors it against other variables that may impact its value, leading to a comprehensive valuation.

Utilizing the VIF formula is particularly useful for assessors and real estate professionals who want to determine the viability of an investment property or to establish its assessed value for tax purposes. By prioritizing income, the VIF method aligns with the income approach to valuation, allowing for a clearer perspective on the property’s worth beyond simply its market price or the total income derived.