Final answer:
In Massachusetts, real estate professionals use computational techniques such as gross rent multipliers, reduction cost approach, unit value, and capitalization rates to determine property values and investment returns.
Step-by-step explanation:
In Massachusetts real estate, computational techniques such as gross rent, reduction cost, unit value, and capitalization rate are used for different purposes in the appraisal and investment calculations. Gross rent is often utilized in the income approach to value a property by estimating the potential income it can generate. The reduction cost approach is a method of valuing a property by estimating the cost to construct a similar property, then subtracting depreciation. The unit value pertains to assessment per unit of comparison, like cost per square foot. Lastly, the capitalization rate is a key real estate valuation measure used to compare different real estate investments. It's essentially the rate of return on a real estate investment property based on the income that the property is expected to generate.