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6 Cards in this Set
- Front
- Back
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What does our author call the approach to the appraisal of real estate that is based on adding together the cost of the individual components that make up the property. It would add together the cost of the land, the plumbing, the lumber, the labor, etc.
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The Cost Approach
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Describe the Income Approach to appraising a house.
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Determining the value of a house based on the net income that property can reasonably be expected to produce.
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What is the Market Approach to appraisal?
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Value is determined by looking at similar properties and what they sold for recently.
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Name the three approaches to appraisal and describe the difference between them.
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1) Market approach--compares similar property recently sold
2) Cost approach--adds together the value of everything on the property 3) Income approach--determines how much someone could make from the property. |
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Fair market value is the most ______________ for the value of the home in __________________.
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1) Probable
2) Cash (or its equivalent) |
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Fair market value is at the center of nearly all real estate transactions. What are the six requirements for someone to assume a property will likely sell at market value.
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1) The property has reasonable exposure time
2) Neither party is under duress 3) All parties are well-informed 4) All parties act prudently and with self-interest 5) Payment is made in cash or its equivalent 6) (I couldn't figure this one out...it is the first blank on the first slide that says "Real Estate Valuation") |
