Real Estate Appraisal

Chapter 1: Introduction to Appraisal

Overview of Appraisal PracticeFinancial InstitutionsReal Estate

Definitions of Real EstateDistinguishing Real Estate from Personal Property

Real PropertyEstatesEncumbrancesGovernment Restrictions on Property Rights

Chapter 2: Understanding Value

What is Value?Elements of ValueValue Distinguished from Price and Cost

Types of ValuePrinciples of Value

Principle of Supply and DemandMarket PrinciplesProduction as a Measure of ValueEffect of Use on Real Estate Value

Factors Affecting Value

Chapter 3: The Appraisal Process

The Eight Steps of the Appraisal ProcessStep 1: Defining the Appraisal ProblemStep 2: Preliminary AnalysisSteps 3 Through 8

Step 3: Collecting, Verifying, and Analyzing the DataStep 4: Analyzing Highest and Best UseStep 5: Valuing the SiteStep 6: Applying the Three Approaches to ValueStep 7: Reconciling the Value IndicatorsStep 8: Reporting the Value Estimate

Chapter 4: Property Description and Appraisal Math

Property DescriptionAppraisal Math

Area and VolumeReciprocalsPercentagesDirect CapitalizationInterestFinancial Calculations

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Chapter 5: Data Collection and Analysis

Regional and Community DataMarket and Neighborhood DataSite DataBuilding DataData Analysis

Comparable PropertiesCost DataIncome and Expense Data

Chapter 6: Site Valuation

Highest and Best UseCriteria for Highest and Best UseHighest and Best Use and the Principle of AnticipationVacant and Improved LandExcess Land and PlottageHighest and Best Use in Residential Appraisals

Methods of Site ValuationSales Comparison MethodAllocation MethodExtraction MethodSubdivision Development MethodLand Residual MethodGround Rent Capitalization Method

Chapter 7: Residential Construction

Classification of HousesTypes of Houses

Architectural StylesCompatibility

Elements of House DesignSitingInterior Functional ZonesRoom Characteristics

Construction Methods and Materials

Chapter 8: The Cost Approach to Value

Basics of the Cost ApproachEstimating Cost

Reproduction and Replacement CostTypes of CostsCost Estimating Techniques

Estimating DepreciationTypes of DepreciationMethods of Estimating Depreciation

Final Value Estimate with the Cost Approach

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Chapter 9: Sales Comparison Approach to Value

Steps in the Sales Comparison ApproachComparative Analysis

Identify the Elements of ComparisonAnalyze and Adjust the Comparables

Reconciliation

Chapter 10: Income Approach to Value

The Investors Perception of ValueRate of ReturnIncome Capitalization

Direct CapitalizationIncomeMultipliers and Capitalization RatesCalculating Value by Direct Capitalization

Yield CapitalizationDiscountingYield Rates

Chapter 11: Reconciliation and Final Value Estimate

ReconciliationThe Reconciliation Process

Reviewing the AppraisalAssessing the Reliability of Value IndicatorsMaking the Reconciliation Judgment

Final Value EstimateUSPAP Standards for Credible AppraisalPoint Estimates and Range Values

Chapter 12: The Appraisal Report

The Appraisal ReportTypes of Appraisal ReportsUniform Residential Appraisal Report (URAR)Addenda to the URAR Form

Chapter 13: Appraising Special Interests

Partial Interests in Real EstateAppraising Partial Interests

Leasehold and Leased Fee InterestsEasementsLiensShared Ownership Interests

Other Forms of OwnershipCondominiums and PUDsCooperativesTimeshares

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Chapter 14: The Appraisal Profession

Overview of the ProfessionFFIRA Appraisal Regulations

Federal Financial Institutions Regulatory AgenciesFFIRA Appraisal Standards

Secondary Market Appraisal RegulationsAppraiser QualificationsUnacceptable Appraisal PracticesReporting Requirements

The Uniform Standards of Professional Appraisal PracticeIntroductory Provisions of the USPAPStandards and Standards Rules