Sensitivity analysis involves changing one variable at a time over a
possible range of outcomes to evaluate the effect of that change
allowing real estate analysts to review each variable's impact upon the
investment property's present value. Sensitivity analysis has
become popular because easy-to-use investment analysis programs
(template-based spreadsheet software for the computer) can calculate
and recalculate a range of variables quickly and hence help the real
estate analyst determine the best possible scenario for buying or
selling investment property.
Sensitivity analysis involves changing one variable at a time over a
possible range of outcomes to evaluate the effect of that change
allowing real estate analysts to review each variable's impact upon the
investment property's present value. Sensitivity analysis has
become popular because easy-to-use investment analysis programs
(template-based spreadsheet software for the computer) can calculate
and recalculate a range of variables quickly and hence help the real
estate analyst determine the best possible scenario for buying or
selling investment property.
