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15 Cards in this Set

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APPRAISAL
opinion of value of real property - not a determination of value
VALUE
refers to present worth of all rights to current and future benefits of ownership
types of ESTIMATES of VALUE
market value
assessed value
insurance value
investment value
1. MARKET VALUE
by far the estimate of value used most often in real estate transactions
the probable price that an informed, willing seller would accept,& an informed, willing buyer would pay if neither of them were under any pressure to buy or sell
& a reasonable amt. of time is allowed for market exposure
Name the COMMON REQUIREMENTS for a REAL PROPERTY APPRAISAL
1. opinion of value must be defined 2. property must be adequately and accurately described 3. opinion of value must be supported w/general & specific data 4. must have specific date 5.appraiser must be unbiased & no undisclosed interest in the prop 6. appraiser must have adequate experience/education to complete the appraisal
The general & basic PURPOSE of a real property appraisal is________
to arrive at an opinion of value of a property
REASONS for APPRAISALS
1. transfer of ownership of a property 2.financing & credit decisions 3.just compensation in condemnation (eminent domain) proceedings 4.tax assessments 5.establishing rental schedules & lease provisions 6. issuance of insurance policies
3 APPROACHES to VALUE used to appraise real property
1. sales comparison approach
2. cost approach
3. income approach
1. Sales Comparison Approach to appraise real property
same as MARKET DATA APPROACH
involves making a direct comparison between the appraised property & other similar props.that have sold recently, or have been listed
COMPARABLES or "COMPS"
The properties used for comparison in the MARKET DATA APPROACH/SALES COMPARISON APPROACH
2. Cost Approach
to appraise real property
Estimates a value for the property based on the current cost to reproduce or replace the improvements
EX. - school bldgs., fire stations, courthouses, highway bridges
3. Income Approach
to appraise real property
used most often w/income producing property, such as apt. bldgs., office bldgs., or shopping centers.
Involves estimating the income a prop can be expected to produce & converting that into an estimated value for the prop
PROPERTY
refers to the rights of OWNERSHIP
RIGHTS of OWNERSHIP include the rights of ________
use, possession, enjoyment, and disposal, AND the right to exclude everyone else from interfering w/those rights.
REFERRED to as the
"BUNDLE of RIGHTS"
CLASSIFICATION of PROPERTY
Name the 2 groups
REAL PROPERTY
and PERSONAL PROPERTY