Real Estate Appraisal. Front Cover · Joseph F. Schram. Rockwell Publishing, - Real property - pages. 0 Reviews. Fundamentals of Real Estate Appraisal, 8th Edition contains all the tools you need to understand today's ever-changing appraisal marketplace. The book. This section contains all of our current collection of books & ebooks. The Student Handbook to The Appraisal of Real Estate, 14th Edition. Price: $
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echecs16.info: The Appraisal of Real Estate, 12th Edition (): Appraisal Institute, Mary Elizabeth Geraci: Books. Fundamentals of Real Estate Appraisal 8th Edition. The top Business and Leadership books of last year picked by site Book Review Editor, Chris Schluep. This item:Fundamentals of Real Estate Appraisal by William L. Ventolo Paperback $ The Appraisal of Real Estate, 14th Edition. by Marcy Elizabeth Geraci. This book is a comprehensive resource for appraisers, with a particularly.
This new edition has been restructured to mirror the organization of the valuation process, moving clearly from the identification of the problem to the report of defined value. The new edition features More discussion of scope of work, client communication, and data standards Increased emphasis on the fundamentals of statistical analysis and the role that descriptive statistics plays in market analysis, highest and best use analysis, and the application of the three approaches to value Expanded coverage of topics introduced in the 13th edition such as green building, advances in information technology, and AVMs A more rigorous exploration of the market analysis process and a more concise discussion of highest and best use analysis More background on the continuing evolution of US and international appraisal standards New thinking on appraisal review, consulting, valuation for financial reporting, and the valuation of non-realty assets This edition of The Appraisal of Real Estate reflects the efforts of dozens of designated members of the Appraisal Institute and other volunteers.
Generally, it does not include the site value.
Liquidation value — may be analyzed as either a forced liquidation or an orderly liquidation and is a commonly sought standard of value in bankruptcy proceedings. It assumes a seller who is compelled to sell after an exposure period which is less than the market-normal time-frame. Price vs value[ edit ] There can be differences between what the property is really worth market value and what it cost to buy it price.
A price paid might not represent that property's market value. Sometimes, special considerations may have been present, such as a special relationship between the buyer and the seller where one party had control or significant influence over the other party. In other cases, the transaction may have been just one of several properties sold or traded between two parties. In such cases, the price paid for any particular piece is not its market "value" with the idea usually being, though, that all the pieces and prices add up to the market value of all the parts but rather its market "price".
At other times, a buyer may willingly pay a premium price, above the generally accepted market value, if his subjective valuation of the property its investment value for him was higher than the market value. One specific example of this is an owner of a neighboring property who, by combining his own property with the subject property, could obtain economies-of-scale. Similar situations sometimes happen in corporate finance. For example, this can occur when a merger or acquisition happens at a price which is higher than the value represented by the price of the underlying stock.
The usual explanation for these types of mergers and acquisitions is that "the sum is greater than its parts", since full ownership of a company provides full control of it. This is something that purchasers will sometimes pay a high price for.
This situation can happen in real estate purchases too. But the most common reason for value differing from price is that either the buyer or the seller is uninformed as to what a property's market value is but nevertheless agrees on a contract at a certain price which is either too expensive or too cheap.
This is unfortunate for one of the two parties. It is the obligation of a real property appraiser to estimate the true market value of a property and not its market price. Market value definitions in the United States[ edit ] In the United States, appraisals are for a certain type of value e.
The most commonly used definition of value is Market Value.
Thus, the definition of value used in an appraisal or Current Market Analysis CMA analysis and report is a set of assumptions about the market in which the subject property may transact. It affects the choice of comparable data for use in the analysis. It can also affect the method used to value the property.
These are usually referred to as the "three approaches to value" which are generally independent of each other: The sales comparison approach comparing a property's characteristics with those of comparable properties that have recently sold in similar transactions.
The cost approach the buyer will not pay more for a property than it would cost to build an equivalent. The income approach similar to the methods used for financial valuation, securities analysis or bond pricing.
However, the recent trend of the business tends to be toward the use of a scientific methodology of appraisal which relies on the foundation of quantitative-data,  risk, and geographical based approaches. One or two of these approaches will usually be most applicable, with the other approach or approaches usually being less useful. The appraiser has to think about the "scope of work", the type of value, the property itself, and the quality and quantity of data available for each approach.
No overarching statement can be made that one approach or another is always better than one of the other approaches. The appraiser has to think about the way that most buyers usually buy a given type of property. What appraisal method do most buyers use for the type of property being valued?
This generally guides the appraiser's thinking on the best valuation method, in conjunction with the available data. For instance, appraisals of properties that are typically purchased by investors e.
Buyers interested in purchasing single family residential property would rather compare price, in this case, the Sales Comparison Approach market analysis approach would be more applicable. The third and final approach to value is the Cost Approach to value. The Cost Approach to value is most useful in determining insurable value, and cost to construct a new structure or building.
For example, single apartment buildings of a given quality tend to sell at a particular price per apartment. In many of those cases, the sales comparison approach may be more applicable.
On the other hand, a multiple-building apartment complex would usually be valued by the income approach, as that would follow how most buyers would value it. As another example, single-family houses are most commonly valued with the greatest weighting to the sales comparison approach. However, if a single-family dwelling is in a neighborhood where all or most of the dwellings are rental units, then some variant of the income approach may be more useful.
So the choice of valuation method can change depending upon the circumstances, even if the property being valued does not change much. The sales comparison approach[ edit ] The sales comparison approach is based primarily on the principle of substitution. This approach assumes a prudent or rational individual will pay no more for a property than it would cost to purchase a comparable substitute property.
The approach recognizes that a typical buyer will compare asking prices and seek to purchase the property that meets his or her wants and needs for the lowest cost. In developing the sales comparison approach, the appraiser attempts to interpret and measure the actions of parties involved in the marketplace, including buyers, sellers, and investors. Data collection methods and valuation process Data is collected on recent sales of properties similar to the subject being valued, called "comparables".
Only SOLD properties may be used in an appraisal and determination of a property's value, as they represent amounts actually paid or agreed upon for properties.
Very comprehensive. This is a bit of a niche market, however, it is an interesting perspective on how to valuate rural properties like farms. This text is a comprehensive reference work that covers all aspects of the valuation of rural properties from both theoretical and practical perspectives.
It explores the components of rural property value and the essentials of property inspection, data collection and analysis, and the application of valuation methodology. Specific details relating to dairy farms, livestock ranches, and orchards are included as well as information on government regulations and resources.
Appraising the Appraisal: This book focuses specifically on how to write a clear and concise appraisal, something that every appraiser must know how to do! The author, himself a seasoned appraisal reviewer, enumerates the many potential pitfalls of the review process and provides advice on appraiser competency, reviewer guidelines, and common report deficiencies. Bruce Lindeman. Ventolo has developed and authored numerous industrial training programs and manuals, including a comprehensive dealership accounting correspondence course used by the Ford Motor Company.
Ventolo resides in Nokomis, Florida. Martha R. She resides in Lakewood, Illinois. Fundamentals of Real Estate Appraisal. Ventolo , Martha R.
Fundamentals of Real Estate Appraisal, 8th Edition contains all the tools you need to understand today's ever-changing appraisal marketplace. The book includes: An Internet Appendix containing Web site addresses useful for all appraisers; Free Appraise-It software for hands- on practice filling out electronic appraisal forms; and over 65 exercises and 15 Achievement exams to test your appraisal knowledge.
Pass your exam the first time with this study guide designed specifically for the appraisal licensing exam. The Modern Appraisal Office.
Legal Rights and Interests.