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15 Cards in this Set
- Front
- Back
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APPRAISAL
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opinion of value of real property - not a determination of value
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VALUE
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refers to present worth of all rights to current and future benefits of ownership
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types of ESTIMATES of VALUE
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market value
assessed value insurance value investment value |
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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 |
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Name the COMMON REQUIREMENTS for a REAL PROPERTY APPRAISAL
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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
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The general & basic PURPOSE of a real property appraisal is________
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to arrive at an opinion of value of a property
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REASONS for APPRAISALS
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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
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3 APPROACHES to VALUE used to appraise real property
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1. sales comparison approach
2. cost approach 3. income approach |
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1. Sales Comparison Approach to appraise real property
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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 |
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COMPARABLES or "COMPS"
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The properties used for comparison in the MARKET DATA APPROACH/SALES COMPARISON APPROACH
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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 |
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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 |
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PROPERTY
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refers to the rights of OWNERSHIP
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RIGHTS of OWNERSHIP include the rights of ________
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use, possession, enjoyment, and disposal, AND the right to exclude everyone else from interfering w/those rights.
REFERRED to as the "BUNDLE of RIGHTS" |
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CLASSIFICATION of PROPERTY
Name the 2 groups |
REAL PROPERTY
and PERSONAL PROPERTY |
