To know the value of your property is necessary so that you can escape fraud easily. There are many kinds of different approaches through which one can know the real value of his or her property. There is this sales comparison approach or SCA which is usually used for the valuation of any kind of residential real estate. It depends upon the relative price values. The choice of one person differs from another and thus it is difficult to value the property solely in terms of SCA. There is another approach or rather model through which this purpose can be fulfilled. It is the capital asset pricing model otherwise simply CAPM. This is different from the above approach because it helps a person to decide whether or not the money he or she has invested is at the right place or not. Along with the precise information about the value of the property, CAPM also specifies to the buyer or seller that the amount of money which is being invested is at risk or not and if it is at risk, the amount of risk or otherwise known as the risk factor is also being specified. There are two other approaches which are there which help a person in this context. These are income approach and cost approach.

Many of the people prefer to take the help of any estate agent in order to get the proper information regarding the value of their property but in this case there are a number of disadvantages when it comes to taking help of an estate agent. The real estate agents may also under value the property so that they would gain benefit.