When making such decisions, especially in the volume that they do, its customary to apply a haircut to value only to protect themselves.

And as @Russell Brazil mentioned expect a haircut.. 

When I was on active duty, there was a saying "If you think you need a haircut, then you need a haircut". 

Once you have a sense on price you can sell the homes for, I would take a haircut to the total resale value and add it to the NOI.

Warning:  the haircut is DEEP!!!!   

then they will eventually take a haircut down the line... but I have had no luck figuring out when that will be before the other guy.agents and sellers ALWAYS get pissy about low offers. 

We tried to sell, but we would have taken a +$40k haircut….so I rented to my brother for 2 years (with the threat I’d kill him if even a scratch happened) and waited out the market, selling at break-even back in 2014.Many.

i dont know "when" if 2020 is right or not but i do personally think that these mega plex luxury buildings are going to feel some serious pain the problem is that theres still so much capital floating around trying to find yield that even if they take a big haircut on price or large vacancy ... there will still be appetite for the riskone thing that could put a big change in the market and probably not talked about as much is the Millennials will stop wanting to live in a box and will start wanting to move into a house.... suburbs that have been basically looked down upon will find itself going thru a renaissance we are already seeing suburbs starting to get things like trendy coffee shops, art centers, etc to make them more geared toward millennials ... this will continue and i think the "city living" in metros that are not nyc sf will see an influx to places i know what you are thinking "ok Alex sure... but what will be the catalyst will be for this change in behavior?"

When neighbors complained about the lawn when grass grew to almost a foot tall, I paid him a visit, and found the once clean shaven man I once knew had a beard over a foot long and had not had a haircut for a good six months.

;P  LOLAs for the predictions, these topics remind me of the old guys that used to hang out at the barber shop where I used to get my hair cut, back when I still had hair to cut :)  .