Procedures C1

Question 1

Valuation Process

Answer 1

A systematic procedure used in the valuation of real property.

Question 2

Steps in the Valuation Process

Answer 2

1. Define the Problem
2. Determine scope of work
3. Gather, record and verify the data
4. Determine the highest and best use
5. Estimate the land value
6. Estimate value by each of the 3 approaches (if applicable)
7. Reconcile the estimated values into the final opinion of value
8. Report the final opinion of value

Question 3

Client

Answer 3

The party or parties who engage, by employment or contract, an appraiser in a specific assignment.
i.e., indiviual, group or entity

Question 4

Sub-steps of Defining the problem

Answer 4

a. Identification and location of the real estate
b. Identification of the property rights
c. Definition of value
d. Purpose and intended use of the appraisal
e. Effective date of the opinion of value
f. Any special limiting conditions

Question 5

1a. Identification and Location of the Real Estate

Answer 5

Can use one of the 3 types of Legal Descriptions to id the property.

=Metes and Bounds
=Rectangular Survey
=Lot and Block

Question 6

Real Property

Answer 6

The interest, benefits and rights inherent in the ownership of real estate.

All the rights, interest and benefits related to the ownership of real estate. Real proeprty is a legal concept distinct from real esate, which is a physical asset. There may also be potential limitations upon ownership rights to real property.

Such as, partial estates:
Life estates
Easements
Encroachments

or, specialized forms of ownership:
   condos
   cooperatives
   PUD
   Timeshare