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To appraise real property means to estimate its value. Appraising is considered to be an art, not a science, because although the appraisal process involves mathematical calculations, appraisers also use their own judgement when appraising real property. There are many reasons for appraising real property. Local communities hire appeasers to estimate the value of property for assessment of property taxes (chapter 18) and to determine the amount of compensation in a condemnation proceeding that i

Investors consider different factors in their attempt to achieve various investment objectives according to their individual financial status, income tax bracket, motives for investing, and access to credit. Different types of real estate offer various abilities to meet investor objectives. Experience indicates that investors are motivated by one or a combination of objectives: (1) safety of principal, (2) protection against inflation, (3) liquidity, (4) increased income (current and/or future),

Because most real property transactions involve some type of financing, real estate licensees must understand this aspect of the business. Fluctuating interest rates, deregulation of financial institutions, and varying rates of inflation have in the past created shock waves among institutional lenders and mortgage specialists. As a result, new practices and variations of former lending procedures evolved. Licensees must keep current in the real estate finance area.

Nearly every business transaction is based on a contract. Key to every contract is the promise. In a real estate contract, the seller promises to convey title to the real estate, and the buyer promises to pay the purchase price. Contract promises are enforceable by law, provided the contract meets certain requirements. A contract defines the parties' legal relationship and spells out their rights and duties.