3 Basic Appraisal
3 Basic Appraisal
Mathematics:
- The shortest distance between 2 points is a
straight line.
In Brokerage:
- The shortest distance between a seller and a
buyer is thru a real estate broker.
SELLER BUYER
1. Site Visitation
2. Measure boundaries
3. Measure building size
4. Notes the description of the land and
improvements
5. Notes neighboring properties
6. Conduct market data
APPROACH OF PROPERTY VALUATION
2. COST APPROACH
3. INCOME APPROACH
MARKET DATA APPROACH
- A method of estimating a property value using
the principle of substitution (1 of 12 principles
in appraisal valuation) based on comparison of
the subject property with similar properties
within the vicinity.
Replacement Cost
- The present cost of replacing or constructing a new
improvement which will represent an exact replica
of the existing one.
THREE METHODS OF ESTIMATING
REPRODUCTION COST OR BUILDING COST