S31: Appraisal
Licensed Residential Real Property Appraiser (150 hours)
- 1,000 in experience in 6 month - can appraise non-complex residential 1-4 unit less than $1 mill
Certified Residential Real Property Appraiser (200 hours)
- bachelors degree - 1,500 experience in 12 months - can appraise any residential - no commercial property
Certified General Real Property Appraiser
- bachelors degree - 3,000 experience in 18 months (1,500 non-res) - can appraise any property
When measuring square footage:
- finished areas only included - garages not included - finished spaces only included if attached to main property - finished spaces only measured if ceiling height is at least 7 feet
Appraiser Trainee (75 hours)
- no experience needed - can appraise anything with supervisor
DUST
Demand, utility, scarcity, transferability
Usually an appraisal is performed to
Determine value for underwriting a mortgage loan, or to price a property and figure out worth
Assessed value
Dollar amount to which the local tax rate is multiplied to determine property tax owed
Comparative Market Analysis (CMA)
Estimate of market value based on recent comparable sales for similar properties
Appraisal
Estimate of value as of specific date/use
What's another term for a valuation that's an unbiased opinion of value?
Formal appraisal
While market value is an opinion of a property's worth on the fair market, which of the following best describes market price?
How much a buyer has paid and a seller has accepted for the property.
A lender requests an appraisal of a property under foreclosure. What type of value is the lender most likely to be interested in?
Liquidation value
Which of the following is the price a lender believes the property will bring at a foreclosure sale?
Mortgage value
Income approach: GRM is 110x, you would
Multiply gross monthly rent by 110
Broker's Price Opinion (BPO)
Opinion of value prepared by real estate licensee, similar to a CMA, not as detailed. Generally ordered by lender or relocation company
Income approach: capitalization formula
Value = net operating income / cap rate
Value in use
Worth of a property as owner is currently using it
Assessed value of real estate
the value used to calculate the property taxes, based on a percentage of the market value
