The Art of Real Estate Appraisal; The Complete Guide for Homeowners and Real Estate Professionals

by William L. Ventolo; Martha R. Williams

• ISBN13: 9781427797209
• ISBN10: 142779720X
• Edition: 2nd
• Format: Paperback
• Copyright: 2008-06-03
• Publisher: Kaplan Publishing

Summary

Real estate appraisals are one of the primary factors in the mortgage decision making process for lenders. Now consumers and real estate agents have a guide to lead them through the process so that they're prepared with accurate knowledge of their property's price even before the professional appraisal.

Author Biography

William L. Ventolo, Jr., a former vice president of Development Systems Corporation and its subsidiary, Real Estate Education Company, received his MS in psychology from the University of Pittsburgh Martha R. Williams received her BA from DePaul University, Chicago, and her JD from the University of Texas, Austin

Table of Contents

Preface	p. vii
Introduction	p. ix
Real Estate and Its Appraisal	p. 1
What Is a Real Estate Appraisal?	p. 2
Land versus Site	p. 7
Real Estate and Real Property	p. 9
Public Restrictions on Land Use	p. 9
Private Restrictions on Land Use	p. 10
Personal Property	p. 11
The Real Estate Marketplace	p. 15
Recent History	p. 15
The Subprime Mortgage Crisis	p. 16
Market Value	p. 18
Value Principles	p. 20
The Appraisal Process	p. 29
Sales Comparison Approach	p. 29
Cost Approach	p. 31
Income Capitalization Approach	p. 32
Relationship of Approaches	p. 35
Steps in the Appraisal Process	p. 36
Summary	p. 38
Data Collection and the Data Bank	p. 41
The Appraisal Process	p. 41
The Data Bank	p. 42
Data Forms	p. 49
The Neighborhood and the Home	p. 61
Residential Construction and Home Inspection	p. 69
Site	p. 69
Building Codes	p. 71
Plans and Specifications	p. 71
Architectural Styles	p. 71
House Types	p. 72
Interior Design	p. 75
Foundation	p. 79
Framing	p. 83
Exterior Trim	p. 83
Roof Coverings	p. 83
Exterior Siding	p. 86
Insulation	p. 89
Exterior Windows and Doors	p. 90
Interior Walls and Finishing	p. 95
Plumbing	p. 95
Heating and Air-Conditioning	p. 96
Electrical System	p. 99
The Sales Comparison Approach	p. 103
Basics of the Sales Comparison Approach	p. 103
Appraisal Process	p. 104
Applying the Sales Comparison Approach	p. 104
Site Valuation	p. 127
Separate Site Valuations	p. 128
Site Data	p. 129
Methods of Site Valuation	p. 134
The Cost Approach	p. 143
The Theory Behind the Cost Approach	p. 143
Applying the Cost Approach Formula	p. 145
Reproduction Cost versus Replacement Cost	p. 145
Finding the Reproduction Cost	p. 147
Accrued Depreciation	p. 151
Itemizing Accrued Depreciation	p. 156
Cost Approach Using the URAR Form	p. 158
Usefulness of the Cost Approach	p. 158
The Income Capitalization Approach	p. 163
Determining Income	p. 164
Selecting the Capitalization Rate	p. 169
Selecting the Capitalization Technique	p. 170
Gross Income Multiplier	p. 172
Reconciliation and the Appraisal Report	p. 177
Reconciliation	p. 177
Types of Appraisal Reports	p. 181
Final Comment	p. 182
Calculating Area	p. 189
Glossary	p. 199
Index	p. 219
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