No he wont be a 'good little boy', he would probably 'undervalue' or under pricing a property 95% of the time if he uses CAPM for residential. His professional indem. insurance premium would be so high after the first year of applying the CAPM approach he might as well do something else. Not to mention he'd be jobless as no bank would ever give him a job to do.
Almost everyone buys stocks as an investment, not everyone buys a house for investment. CAPM might be more suited to commercial asset not residential.
I wouldnt think it take much more intellect to use CAPM in place of any other approachs currently used in valuations.
