About This Chapter
Real Estate Value - Chapter Summary
Infuse a bit of fun into your study time with these lessons on real estate value. You can review different approaches used to appraise properties, types of real estate value, and why the date of value premise is important. There's also a lesson that discusses various considerations when analyzing the highest and best use of real estate. By the end of the chapter, you should be poised to do the following:
- Provide an overview of economic principles
- Distinguish between Classical and Keynesian economy models
- Explain the purpose of a property appraisal
- Outline key principles associated with property valuation
- Recall governmental forces that influence real estate value
- List important factors in Comparative Market Analysis
- Explain how to determine the operating expenses of an investment property
- Discuss the application of ethics in real estate appraisal
The lessons in this chapter on real estate value are both easy to comprehend and engaging. You'll find vocabulary words highlighted in bold so that you can easily review key terms. Another of many convenient features is the ability to test your comprehension of each lesson by taking a short quiz.
1. What is Economics? - Definition & Principles
Why do we buy more when something goes on sale? At what point does one stop consuming a good they love to consume? All of these can be addressed by the principles of economics, which are discussed in this lesson.
2. Economy Models: Classical Vs Keynesian
In this lesson, we explore two important models that economists use to decipher capitalist economies and discuss when each is best used to describe the economy.
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. 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.
5. Influences on Real Estate Value: Economic, Governmental & Social
Despite real estate being available for purchase, sale or lease all over the world, the value of real estate is mostly controlled by local factors. The area's social, economic, and governmental conditions all contribute to the determination of real estate value.
6. Types of Real Estate Value
There are many ways to determine the value of real estate. Learn how to help your sellers and buyers determine a fair price for the property they are selling or buying.
7. Date of Value Premise in Real Estate Appraisal
The date of value in a real estate appraisal is very important and can be current, retrospective, or prospective. This lesson will explain why each of those dates may be used.
8. 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.
9. Investment Analysis for Property Acquisition
In this lesson, we will learn about information analysis. This skill involves collecting appropriate data on a property and determining its operating and financing expenses.
10. Tests of Highest & Best Use in Real Estate
Highest and Best Use is a fundamental principal of real estate valuation. This lesson will go over the four generally accepted tests to find a property's Highest and Best Use.
11. Highest & Best Use: Analysis & Application
In this lesson, you'll learn how to analyze and apply highest and best use property values as determined by the market/marketability and property type.
12. Ethics in Real Estate Appraisal: Theory & Practice
Appraisers not only have rules of law to follow in their practice, as there are also ethical considerations that they must abide by. We will discuss some of those and how they apply.
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Other chapters within the Ohio General Appraiser Exam: Study Guide & Practice course
- Real Property & Property Ownership
- Government Powers in Real Estate
- Surveying Property in Real Estate
- Building Components & Structures
- Liens & Encumbrances in Real Estate
- Rights to Use in Real Estate
- Land & Site Valuation
- Statistics, Valuation Models & Finance for Real Estate
- Common Real Estate Calculations
- Sales Comparison Approach in Real Estate
- Cost Approach in Real Estate
- Income Approach in Real Estate
- Reconciliation in Real Estate Appraisal
- USPAP Compliance
- Real Estate Appraisal Report Writing