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17 Cards in this Set
- Front
- Back
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estimate or opinion of value based on supportable evidence and approved methods
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appraisal
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opinion of market value on a property give to a lender or client with detailed and accurate information
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appraisal report
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independent professional trained to provide an unbiased estimate of value in an impartial and objective manner, according to the appraisal process
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appraiser
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what does the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 require?
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requires appraisals performed as part of a federally related transaction must be performed by a state-licensed or state-certified appraiser
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what is a federally related transaction?
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any real estate-related financial transaction in which a federal financial institution or regulatory agency engages
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what type of property appraisal does not require a licensed or certified appraiser?
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residential property valued at $250,000 or less
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what type of property appraisal requires a certified appraiser?
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nonresidential property valued at above $250,000
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report compiled from research of the marketplace, primarily similar properties that have been sold
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competitive market analysis
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appraisal process
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-state the problem--what type of value is being sought
-list the data needed and the sources -gather, record, and verify the necessary data -determine the highest and best use of the site -estimate the land value--usually by sales copmparison analysis -estimate the value by each of the 3 approaches -reconcile the estimated values for the final value estimate -report the final value estimate |
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date collected for appraisal are divided into 2 basic classes
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-general date--dovering nation, region, city, and neighborhood
-specific date--details of the subject property as well as comparative date relating to costs, sales, income, and expenses of properties similar and competitive with the subject property |
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to have monetary worht based on desirability
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value
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characteristics of value
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-DUST
-demand--the need or desire for possession or ownership backed by the financial means to satisfy that need -utility--usefulness for its intended purpose -scarcity--a finite or limited supply -transferabiity--the relative ease with which ownership rights can be transferred |
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most probable price that a property should bring in a fair sale
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market value
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most probable price a property will bring in a fair sale...
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-in a competitive and open market
-buyer and seller each acting produently and knowledgeably -price not affected by unusual circumstances |
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what the property actually sells for; sales price
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market price
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does cost equal market value?
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no
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economic principles that can affect the value of real estate...
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-anticipation
-change -competition -conformity -contribution -highest and best use -increasing and diminishing returns -plottage -regression and progression substitution -supply and demand |
