About This Chapter
Valuation of Real Property - Chapter Summary
This mobile-friendly chapter on real property valuation helps you study the difference between real estate and real property. Review concepts such as property valuation, market value, and property appraisal, including the principles, processes, and purposes of each. You'll study the impact of market data analysis and the function of project feasibility studies. By the end of this chapter you'll also be able to:
- Explain the uniform residential appraisal report's purpose and interpretation
- Define the purpose of a certificate of reasonable value
- Understand site, area-regional and neighborhood analysis in property appraisal
- Detail the rules of USPAP
- Differentiate between primary and secondary markets in real estate
- Point out the role of Fannie Mae in real estate financing
- Break down the rules of tax shelters and passive activity loss
Spend as much or as little time as you need with this information-packed chapter. All of the lesson are written in a clear, concise format that makes studying a breeze. Follow up with a self-check quiz after each lesson to assess your knowledge and understanding.
1. Real Estate vs. Real Property: Differences & Terms
Real estate professionals need to know the difference between real estate, real property, and personal property. In this lesson, you'll learn to differentiate between these important terms as well as related concepts.
2. 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.
3. 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.
4. 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.
5. Area-Regional & Neighborhood Analysis in Property Appraisal
In this lesson, you will learn how to interpret the area-regional and neighborhood analysis section in a property appraisal report. Many factors and considerations determine if the current use of the property is the highest and best available.
6. 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.
7. Site Analysis in Property Appraisal: Definition & Factors
Correctly valuing real estate is very important because of the money at stake, even for a relatively small purchase. In this lesson, you'll learn about site analysis and some of the key components involved with it.
8. USPAP: Definition & Rules
In this lesson we will identify and summarize the five basic rules for real estate appraisers found in the preamble to the Uniform Standards of Professional Appraisal Practice.
9. Uniform Residential Appraisal Report: Purpose & Interpretation
The Uniform Residential Appraisal Report form for real estate is a standard appraisal report type used for single-family properties. This lesson will cover why the report is in place, and how to interpret it.
10. Project Feasibility Study: Definition & Steps
In this lesson, we'll be looking at a project feasibility study, which is one tool that many organizations use to determine if the costs and risks of a project outweigh the benefits, or if a project is even viable.
11. Primary vs. Secondary Mortgage Markets: Definition & Differences
Mortgage markets are not only important for borrowers and lenders, but they also play an important role in the world of investment. In this lesson, you'll learn about the primary and secondary mortgage markets in the United States.
12. The Role of Fannie Mae in Real Estate Financing
In this lesson, you will learn about the history and structure of Fannie Mae. We will also cover the role Fannie Mae plays in the field of real estate financing. A short quiz follows.
13. Certificate of Reasonable Value: Definition & Purpose
When a veteran uses his or her VA benefits to obtain a home loan, an appraisal of the home is done to determine its value before a Certificate of Reasonable Value can be approved.
14. Tax Shelters & Passive Activity Loss: Definition & Rules
In this lesson, you will learn about the tax benefits of real estate. We will cover the definitions of tax shelters and passive activity losses. Understanding the rules of these topics can help a real estate investor become more profitable.
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Other chapters within the Alabama Real Estate Broker Pre-License Exam: Study Guide & Practice course
- Alabama Real Estate Licensure
- Alabama Real Estate Law & Statutory Requirements
- Alabama Real Estate Violations & Disciplinary Actions
- Understanding Agency Relationships & Agreements in Real Estate
- Ethical Conduct & Professional Duties in Real Estate
- Fundamentals of Business Planning
- Human Resource Management for Real Estate
- Real Estate Licensee Training & Supervision
- Real Estate Sales Contracts for Buyers & Sellers
- Property Disclosures in Real Estate
- Closing & Settlement Real Estate Transactions
- Overview of Real Estate Negotiation
- Fundamentals of Real Estate Financing
- Risk Management for Real Estate
- Advertising Laws in Real Estate
- Overview of Property Management
- Commercial Real Estate
- New Construction Real Estate
- Alabama Real Estate Broker Pre-License Exam Flashcards