Real Estate Appraisal RE 201 Ch 1-8

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Appraiser qualifications requirements come from
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Terms in this set (42)
all appraisals should includeproperty description, opinion of property condition, estimate of valuewhich test would you most likely use to determine if a shed should be considered real estate or personal propertyMethod of attachmentwhich of the following would deem a real estate contract to be illegalthe contract is not signed by both parties the contract is not in writing there is no consideration involvedwhat type of ownership involves a remaindermanlife estatewhich of the following is a requirement for landlordskeep property safe and habitablea planned unit development PUD is different from a condominium mainly because with a PUD you own the landTruemedian is another word for averagetruea deed is the written instrument used to convey TitleTrueA listing agreement is considered a contracttrueMetes and Bounds legal descriptions typically include the phrase "starting at the point of beginning"TrueSteps to the appraisal process1. identify the problem 2. determining the scope of work 3. Gather and record data 4. analyze data - translating data into usable facts 5. Estimate land value 6. Estimate value by each of the three approaches - Cost approach - Sales approach - Income approach 7. Reconcile the values 8. Report the final valueCoast approachcost of land, building , and anything else that goes along with thatSales approachuse the sales prices of similar homes to determine the value of the subject. most reliable with single family homesIncome approachdetermines value based on the amount of money that a property earns via rent, crops, etc. most reliable with income producing propertiesHow long is an appraisal valid forit is good for one day, in theory it is good for the moment the appraiser is appraising the propertyeffective date of appraisalwhatever date the client needs the value forGross living areatotal amount of above ground spacegross building areatotal amount of finished living area - finished attics and basements are included - typically used for income producing propertiesLEEDsone of several national programs which rate houses and give certifications on how "green" a building isElements of a green buildingenergy efficient use of sustainable materials site management water management designSubject property dataOwner legal description parcel # taxesContract and listing info datahas the prop. been listed in the past 12 months contract data terms of the contract prior sales/ tranfers w/ past 3 yearsneighborhood datahow built up % prices typically increasing or decreasing proximity to hazards stage of life cycle prox to employment days on market (current marketing time) neighborhood boundariessite datashape of lot and location on street topography size utilities available imporvements zoning view - rated A- adverse N- neutral B- beneficialbuilding datafirst impressions materls landscaping condition measurments orientation on lotinterior datafloors permanent fixtures cabnietry trim room count foundationWhat are we not looking for in a housepersonal property occupants colors/ taste housekeeping/ cleanlinessSales comparison approach-a comparable property is a property the has been Sold (Arms length sales) -IMPORTANT - all sales must be verified by one of the parties to the transaction. Buyers, sellers, realtor -prior salesPlaces to get data1. physical personal inspection - best source of information 2. information tht comes from the owner - owners are always bias and often wrong 3. county records - county auditor - appraises property for tax purposes 4. Multiple listing service - compilation of listing and sales from local realtors in an areaElements that create value ( DUST )Demand utility scarcity transferabilitybasic value principalsanticipation competition change balance conformity progression regression externalities growth equilibrium decline revitalization substitution highest and best use contribution opportunity costInfluences on RE valuephysical and environmental econimc governement social