About This Chapter
Property Value & Appraisal - Chapter Summary
This chapter's overview of property value and appraisal ensures you know how to interpret appraisal reports, calculate property taxes, and that you understand market data analysis in property appraisal. To build your knowledge of these and other topics, review engaging lessons developed by experts. Once you've completed this chapter, you will be able to:
- Share the definitions of property valuation and market value
- Explain the purpose of a property appraisal
- List and define construction terms used in property appraisals and inspections
- Outline the sales comparison, cost and income approaches to property valuation
- Provide the definition of net operating income and the gross rent multiplier
- Explain the meaning of comparative marketing analysis in real estate
- Define a BPO and equity in real estate
- Share examples of a list price
With each lesson in this chapter is a multiple-choice quiz designed to help you gauge your knowledge of key concepts. Take the quiz before, during, or after reviewing the lesson, and use our practice exam for an even more comprehensive review of the chapter. Worried that a busy schedule might hinder your ability to study? Around-the-clock computer and mobile access to this chapter makes it easy to explore all study tools whenever your schedule permits. If you're struggling with any concepts presented in the lessons, be sure to send questions to our subject-matter experts via the dashboard.
1. Property Valuation: Definition & Principles
Valuing property accurately is very important to sellers, home purchasers, lenders, and real estate investors. In this lesson, you'll learn about property valuation and some of its key principles.
2. What is Market Value? - Definition & Overview
What is something worth? How is price determined? Is price the same as value? In this lesson, you'll learn about market value and how it is determined. You'll also have an opportunity to reinforce your knowledge with a short quiz.
3. Property Appraisal: Definition, Purpose & Process
Let's take a look at property appraisal and broad explanations of different approaches. We'll discuss how these approaches work and what purposes they serve, and help understand how they tie into the final reconciliation of value.
4. Construction Terms Used in Property Appraisals & Inspections
Appraisal and inspection reports often include construction and building terms to describe improvement of a property. Real estate professionals needs to have a basic familiarity with common terms to understand these reports.
5. How to Interpret an Appraisal Report
In this lesson, you will learn how to interpret a uniform residential appraisal report. You will see where an appraiser assigns a value to the home, the approaches that the appraiser used to reach that value, and the key areas to focus on when you review the report.
6. The Sales Comparison Approach to Property Valuation
Residential real estate listing prices are often determined using the comparative sales approach. In this lesson, we will define and describe that method.
7. Cost Approach to Property Valuation: Definition & Process
In this lesson, we will learn about the cost approach to valuation, a widely-used method for determining market value of real property. We will explore some of the benefits and limitations of this method. Test your knowledge afterward with a quiz.
8. The Income Approach to Property Valuation
The income approach to property valuation is a useful tool for investors to evaluate income producing real estate. We will discuss the three major formulas that comprise the approach.
9. Net Operating Income & Gross Rent Multiplier: Definition & Calculation
Net operating income and gross rent multiplier calculations can help a real estate investor quickly evaluate prospective purchases and measure performance. We will also look at some of the other formulas investors use for their investment analysis.
10. Market Data Analysis in Property Appraisal: Definition & Factors
Comparative Market Analysis (CMA) is a method for pricing a real estate property that is for sale. Factors that are important in CMA include market area delineation, demand analysis, supply analysis, absorption analysis, vacancy analysis, and market rental analysis.
11. Comparative Marketing Analysis in Real Estate
In this lesson, we will examine the meaning of 'comparative marketing analysis' in real estate and discover how we can leverage this concept in real life.
12. What is a BPO in Real Estate?
Before making a decision regarding selling, buying, or renting their home the owner will want to know it's accurate value. A broker price opinion provides an alternative to an appraisal that allows homeowners to learn the value at a low cost.
13. What is Equity in Real Estate?
In this lesson we will define the concept of real estate equity and provide examples of how to calculate equity given property values and mortgage balances.
14. What is List Price? - Definition, Examples & Formula
The list price is something you need to know every time you go shopping. Learn what the list price means and how you can use it to help you calculate your final cost when shopping.
15. Property Taxes: Calculations & Rates
Depending on where you live, the property taxes for houses are calculated differently. Watch this video lesson to see how the calculations are made based on some example rates.
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Other chapters within the Indiana Real Estate Broker Exam Study Guide course
- Introduction to Real Property
- Public & Private Land-Use Control
- Estate Ownership, Rights & Interest
- Deeds & Property Transfers
- Property Titles
- Introduction to Real Estate Contracts
- Real Estate Agencies & Agency Relationships
- Listing Agreements & Property Management
- Fair Housing & Consumer Protection
- Risk Management in Real Estate
- Property Disclosures
- Introduction to Real Estate Financing
- Real Estate Lender Requirements
- Federal Real Estate Financing Regulations
- Closing & Settlement Real Estate Transactions
- Real Estate Investments
- Indiana Real Estate Commission & Licensing
- Indiana Real Estate Law
- Real Estate Business Procedures
- Indiana Real Estate Broker Exam Study Guide Flashcards