Ch 17 - Property Valuation Flashcards
An estimate or opinion of value of a specific property as a specific date.
Appraisal
Usually appraise residential properties
Certified residential appraisers
Usually appraise commercial properties
Certified general appraisers
In NC, who can conduct a formal appraisal that can be used in federally related transactions?
Appraisers must be licensed by the state.
Who sets minimum standards of practice for appraisals?
The Appraisal Standards Board
An exception that allows licensed real estate brokers to perform a comparative market analysis as long as they do not in any way represent themselves as a real estate appraiser.
NC Appraisers Act
the analysis of sales of similar recently sold properties in order to derive an indication of the probable sales price of a particular property by a licensed real estate broker.
Comparative Market Analysis (CMA)
Rule repealed in October 2012, allows brokers to perform broker price opinion (BPO) as a provisional broker under a broker or BIC.
NC Real Estate Commission
Four characteristics of Value
DUST: Demand, Utility, Scarcity, and Transferability
The present worth of future benefits arising from the ownership of real property.
Value
A reasonable opinion of a property’s value
Market Value
The actual selling price of a property
Market Price
May not equal either market value or market price
(property) Cost
Four forces that effect property value?
Social, economic, political, and physical forces
What affects the value of real estate?
Economics
